A good example of a public good is ?
Correct answer: C. national defence
- A. public transport
- B. the national health service
- C. national defence
- D. rail transport
Explanation
National defence is non-rival and largely non-excludable, so one person’s protection does not reduce another’s and people cannot easily be excluded from it. Public transport and rail services are generally excludable and rival when congested.
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About Public Finance
Government revenue and expenditure are analysed through taxation, public borrowing, budgets, subsidies, transfers and public debt. The topic explains how fiscal policy affects resource allocation, income distribution, economic stability and growth, while distinguishing direct from indirect taxes, progressive from regressive taxation, and public goods from goods supplied by private markets.
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