📚 Learning Guide
Product and Factor Markets
easy

Which of the following is an example of a public good in the product and factor markets?

Master this concept with our detailed explanation and step-by-step learning approach

Learning Path
Learning Path

Question & Answer
1
Understand Question
2
Review Options
3
Learn Explanation
4
Explore Topic

Choose the Best Answer

A

National defense

B

Private tutoring

C

Restaurant meals

D

Clothing retail

Understanding the Answer

Let's break down why this is correct

Answer

A public good is something that everyone can use without it running out, and one person using it doesn't stop others from using it too. A clear example of a public good is street lighting. When a streetlight is on, it helps everyone walking or driving by, and one person using the light does not take away from another person's ability to see it. In the product and factor markets, things like national defense or public parks are also considered public goods because they provide benefits to all citizens without direct payment. Since no one can be excluded from using these goods, they are funded by taxes and provided by the government for the benefit of the entire community.

Detailed Explanation

National defense is a public good because everyone benefits from it, and no one can be excluded. Other options are incorrect because Private tutoring is not a public good; Restaurant meals are also not public goods.

Key Concepts

Types of goods
Topic

Product and Factor Markets

Difficulty

easy level question

Cognitive Level

understand

Ready to Master More Topics?

Join thousands of students using Seekh's interactive learning platform to excel in their studies with personalized practice and detailed explanations.