PRC-3 · Chapter 1 · Question 56 of 61
The state installs a flood defense barrier protecting an entire coastal town. No resident can be excluded from its protection, and one house being protected does not stop another house from being protected. This infrastructure is a classic example of a:
Test yourself: pick an answer
Reveal answer & explanation
Correct answer: B) Public good
Explanation
Public goods are non-excludable (you cannot stop someone from benefiting) and non-rivalrous (one person's use does not diminish another's).
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