Which of the following would be typically classified as a public good?
Question 9 options:
postal delivery
national defense
toll roads
college education
I say college ed
I disagree. College ed is so awfully expensive that many cannot afford it.
Study this definition of public good.
"Public Good
A public good is a product that one individual can consume without reducing its availability to another individual, and from which no one is excluded. Economists refer to public goods as "nonrivalrous" and "nonexcludable." National defense, sewer systems, public parks and other basic societal goods can all be considered public goods."
-- Investopedia
national defense
Right.
To determine which of the options would be typically classified as a public good, we need to understand the characteristics of a public good.
A public good has two main characteristics: non-excludability and non-rivalry. Non-excludability means that it is difficult or impossible to exclude individuals from consuming the good once it is provided. Non-rivalry means that one person's consumption of the good does not diminish its availability to others.
Now let's evaluate each option based on these characteristics:
1. Postal delivery: Postal delivery is excludable since packages and letters can be addressed to specific individuals or households. Therefore, it does not meet the non-excludability criterion and is not typically considered a public good.
2. National defense: National defense is a classic example of a public good. It is non-excludable because it is challenging to exclude individuals from benefiting from national defense once it is provided. It is also non-rivalrous because one person's protection does not reduce the level of protection available to others. Therefore, national defense is typically classified as a public good.
3. Toll roads: Toll roads are excludable since individuals can be required to pay a fee to access and use them. Hence, they do not meet the non-excludability criterion and are not considered public goods.
4. College education: College education is excludable since individuals must meet certain criteria (such as admission requirements and payment of tuition fees) to access and receive the education. Therefore, it does not meet the non-excludability criterion and is not typically classified as a public good.
Based on the characteristics of a public good, national defense is the option that would be typically classified as a public good.