Solution
A passenger airplane
Public goods are services which must be provided collectively for two main reasons: Non-excludability - the goods cannot be confined to those who have paid for it Non-rivalry in consumption - the consumption of one individual does not reduce the availability of goods to others
.
Which of the following is the best example of a public good (or quasi-.docx
1. Which of the following is the best example of a public good (or quasi-
public good)?
A. A passenger
airplane
B. A hamburger
C. A fireworks show
D. A share of IBM
stock
Which of the following is the best example of a public good (or quasi-
public good)?
A. A passenger
airplane
B. A hamburger
C. A fireworks show
D. A share of IBM
stock
Solution
A passenger airplane
Public goods are services which must be provided collectively for two main reasons: Non-
excludability - the goods cannot be confined to those who have paid for it Non-rivalry in
consumption - the consumption of one individual does not reduce the availability of goods to
others