PUBLIC GOOD

June 2019, Paper-II
Question Which of the following is an example of the public good?
a) Residential building
b) National defense
c) Restaurant meals
d) Swimming pool of a house
Answer B
A public good is a good that is both non-excludable and non-rivalrous, in that individuals cannot be excluded from use or could benefit from without paying for it, and where use by one individual does not reduce availability to others or the good can be used simultaneously by more than one person. One of the best examples of a public good is national defense. To the extent one person in a geographic area is defended from foreign attack or invasion, other people in that same area are likely defended also.