A Lighthouse Is a Public Good

question 86

Multiple Choice

A lighthouse is a public good:

• A) because it doesn't cost any more to light the way for 105 ships than it does to light the way for 104 ships, but for no other reason.
• B) because there is no way to prevent those who haven't contributed to the lighthouse from seeing better because of it, but for no other reason.
• C) because the government produces it, and for no other reason.
• D) for the reasons in A and B together.
• E) for the reasons in A, B, and C together.

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Definitions:

Statute of Limitations

A law that sets the maximum time after an event within which legal proceedings may be initiated.

Previous Debt

An obligation or a financial liability that was incurred before the current period or transaction being considered.

Illusory Promise

A statement that appears to assure a commitment but lacks the essential elements to bind the promisor legally.

Option to Cancel

A clause in a contract that allows one or more parties to terminate the agreement under certain conditions.