GK
BUSINESS ECONOMICS
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Question
[CLICK ON ANY CHOICE TO KNOW THE RIGHT ANSWER]
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Roads
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Clothing
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McDonalds
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Houses
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Detailed explanation-1: -Examples of public goods are education, infrastructure, lighthouses, flood control systems, knowledge, fresh air, national security, official statistics, etc.
Detailed explanation-2: -Quasi-public goods – definition Examples include roads, tunnels and bridges. Markets for these goods are considered to be incomplete markets and their lack of provision by free markets would be considered to be inefficient and a market failure.
Detailed explanation-3: -For a good to be a public good, it must be nonexcludable and nonrival. So, for example, public transportation is not a public good. It is excludable, because the transit company won’t give you a ride if you don’t pay the fare. It’s also rival because public transportation has limits.