Question:
An example of a pure public good is
(1) health service.
(2) national museum.
(3) national defence.
(4) rail transport service.
(5) education.
Correct Answer:
(3)
Answer Explanation:
A pure public good must be completely non-excludable (you cannot stop someone from benefiting) and completely non-rivalrous (one person’s use doesn’t diminish another’s). National defence perfectly fits this definition. Health and education are merit goods (private goods with positive externalities).
Topic: Market Failure Year: 2017
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