National Defense Is a Classic Example of a Public Good

question 21

Multiple Choice

National defense is a classic example of a public good because

• A)there is no market for private security services.
• B)it is difficult to exclude people from receiving the benefits from national defense once it is provided.
• C)everyone agrees that some level of national defense is important, but only the government knows the optimal amount.
• D)there are no private firms willing to supply defense goods such as tanks and weapons.

---

Definitions:

Substitute Goods

Products or services that can serve as replacements for each other; when the price of one increases, the demand for the other increases.

Liquid Laundry Detergent

A water-based cleaning agent used for washing clothes, which is specially formulated to dissolve, suspend dirt and soils, and rinse them away, leaving the fabric clean.

Powdered

Reduced to a fine or dust-like particle size through grinding or pulverization.

Demand Curve

A graphical representation showing the relationship between the price of a good and the amount of the good that consumers are willing and able to purchase at each price.