A Lighthouse Is Typically Considered to Be a Public Good

question 90

Multiple Choice

A lighthouse is typically considered to be a public good because

• A)the owner of the lighthouse is able to exclude beneficiaries from enjoying the lighthouse.
• B)there is rarely another lighthouse nearby to provide competition.
• C)a nearby port authority cannot avoid paying fees to the lighthouse owner.
• D)all passing ships are able to enjoy the benefits of the lighthouse without paying.

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Definitions:

Business

Business refers to the organized efforts of enterprises to produce and sell goods and services for profit.

Additional Output

Refers to the extra amount of production a company or economy can generate when it utilizes additional resources or inputs.

Guaranteed Contracts

Agreements that ensure certain terms, such as payment or service delivery, regardless of future circumstances or performance.

Salaries

Regular payments made to employees for their labor or services, typically expressed as annual amounts but paid in smaller increments such as monthly or biweekly.