Open Question
Label the goods as Private Goods (PRI), Common Resources (CR), Club Goods (CG), or Public Goods (PUB).
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8. The Types of Goods
Four Types of Goods and Two Characteristics
Multiple Choice
Which of the following is an example of a public good?
A
Cable television
B
A slice of pizza
C
National defense
D
A toll road
Verified step by step guidance1
Step 1: Understand the definition of a public good. A public good is characterized by two main features: non-excludability (people cannot be prevented from using it) and non-rivalry (one person's use does not reduce availability to others).
Step 2: Analyze each option against these criteria. For example, cable television is excludable because you need a subscription, so it is not a public good.
Step 3: Consider a slice of pizza, which is rivalrous and excludable because if one person eats it, others cannot, so it is a private good.
Step 4: Evaluate a toll road, which is excludable because you must pay to use it, so it is not a public good.
Step 5: Recognize that national defense is non-excludable and non-rivalrous, as it protects all citizens regardless of individual payment or usage, making it a classic example of a public good.
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