Which of the following does NOT fall under the category of Public Goods?
- ARoads
- BGovernment administration
- CNational defence
- DCars
Solution & Step-by-step Explanation
In economics, public goods are defined by two main characteristics: non-excludability and non-rivalry. This means individuals cannot be effectively excluded from their use, and use by one person does not reduce availability to others.
Roads, national defence, and government administration are examples of public goods provided by the state.
Cars are private goods because they are both excludable (only the owner owns and uses them) and rivalrous (one person driving a specific car prevents another from driving it simultaneously).
Roads, national defence, and government administration are examples of public goods provided by the state.
Cars are private goods because they are both excludable (only the owner owns and uses them) and rivalrous (one person driving a specific car prevents another from driving it simultaneously).