An example of public good is ?
Correct answer: B. preservation of wetlands
- A. a beautifully landscaped lawn.
- B. preservation of wetlands
- C. a public utility.
- D. a book
Explanation
Wetland preservation benefits many people and is difficult to restrict to paying users, so it has the non-excludable character of a public good. A book and most public utilities are generally excludable, while a landscaped lawn may be privately controlled.
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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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