Asked by Ma Michelle Sison on Apr 28, 2024
Verified
The best example of a good whose consumption is NOT excludable is:
A) a yard.
B) a house.
C) a bicycle.
D) national defense.
Excludable
A characteristic of a good or service that means it is possible to prevent people who have not paid for it from having access to it.
National Defense
The protection and defense of a country's interests, territories, and citizens, usually handled by the military and defense agencies.
Consumption
The act of using goods and services to satisfy human wants or needs, a primary activity analyzed in consumer behavior and economics.
- Identify examples of public goods and common resources.
- Recognize non-excludability and non-rivalry as key aspects that characterize public goods.
Verified Answer
CK
Carly KaminskiMay 03, 2024
Final Answer :
D
Explanation :
National defense is a public good whose consumption is not excludable because it is impossible to exclude individuals from benefiting from national defense once it is provided. For example, even those who do not pay taxes towards national defense can still benefit from it.
Learning Objectives
- Identify examples of public goods and common resources.
- Recognize non-excludability and non-rivalry as key aspects that characterize public goods.