Which of the following best defines a public good?
A) A public good is a good that uses public funds to finance its production.
B) A public good is a good that is sold to other people in the market.
C) A public good is a good that requires government approval before it can be produced.
D) A public good is available for anyone to utilize, regardless on who pays and who doesn't.

Question

Quizplus · Accepted Answer

A public good is a type of good that is non-excludable and non-rivalrous, meaning that it is available for anyone to use and consumption by one person does not deplete the good for others. Examples of public goods include clean air and national defense. Public goods may be provided by the government or by private organizations, but they are typically not provided by the market because of the free-rider problem (where people can benefit from the good without paying for it).

Which of the Following Best Defines a Public Good