Which of the Following Is an Example of a Pure

question 4

Multiple Choice

Which of the following is an example of a pure private good?

• A) national defense
• B) the Florida State Turnpike, a non-congested toll freeway
• C) Lake Erie
• D) the Metropolitan Museum of Art in New York City
• E) the new heat pump your neighbor bought for her house

---

Definitions:

Actuarially Determined

Calculated based on actuarial methods and assumptions, often referring to pension plan contributions or insurance risk assessments.

Pension Funds

Investment pools that collect and invest contributions from workers and employers to provide retirement benefits to the workers.

Banks

Financial institutions licensed to receive deposits and make loans. They also offer various other financial services such as wealth management, currency exchange, and safe deposit boxes.

Thrifts

Financial institutions that primarily accept savings deposits and make mortgage loans, including savings and loan associations, savings banks, and credit unions.