PRC-3 · Chapter 1 · Question 43 of 61
National defense is provided by the government because it protects everyone simultaneously and no citizen can be excluded from its benefits. What economic term describes this?
Test yourself: pick an answer
Reveal answer & explanation
Correct answer: C) Public good
Explanation
Public goods are non-rival and non-excludable, meaning they benefit everyone and one person's use does not reduce the availability for others.
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