Public goods
A) are overproduced by unrestrained markets.
B) are simply private goods that the government provides.
C) cannot be consumed by more than one person without the degradation of the value of the good.
D) can be consumed by more than one person without degradation of the value of the good.

Question

Quizplus · Accepted Answer

Public goods are goods or services that can be consumed by more than one person without a reduction in the value of the good. Examples include national defense, street lighting, and public parks. Because they can be enjoyed by anyone, regardless of whether or not they pay for them, public goods are typically underprovided by unrestrained markets, as people tend to free-ride and avoid paying for goods they can get for free.

Public Goods