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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
Which of the following is the best example of a public good (or quasi-.docx

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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