Which of the Following Is the Best Example of a Public

question 5

Multiple Choice

Which of the following is the best example of a public good?

• A) long distance telephone service
• B) national defense
• C) an amusement park
• D) the electric service of a public utility

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Definitions:

Comparative Advantage

The ability of an entity to produce a good or service at a lower opportunity cost than others.

Absolute Disadvantage

A situation where an individual, country, or company is less efficient in producing goods or services compared to another.

Opportunity Cost

The rejection of advantageous prospects from other paths when one path is chosen.

Free Trade

The absence of restrictions or tariffs on the import and export of goods and services between countries, allowing for the unimpeded flow of goods, services, and capital.