Asked by Louella Jackson on May 11, 2024
Verified
Statement I.There are several public goods that were once privately produced.
Statement II.National defense is a public good.
A) Statement I is true and statement II is false.
B) Statement II is true and statement I is false.
C) Both statements are true.
D) Both statements are false.
National Defense
The protective measures taken by a nation in order to defend itself against potential aggressors, including military forces and defense strategies.
Public Goods
Are goods that are non-excludable and non-rivalrous, meaning they can be consumed by one person without preventing the consumption of the good by another, and no one can be effectively excluded from using the good.
- Comprehend the principle of public goods and their attributes.
- Identify the government's part in rectifying market shortcomings and provision of public utilities and services.
Verified Answer
JW
Jason WoodwardMay 14, 2024
Final Answer :
C
Explanation :
Statement I is true as many public goods such as roads and bridges were once privately produced. Statement II is also true as national defense is considered a classic example of a public good. Therefore, both statements are correct.
Learning Objectives
- Comprehend the principle of public goods and their attributes.
- Identify the government's part in rectifying market shortcomings and provision of public utilities and services.