Question

<!--td {border: 1px solid #ccc;}br {mso-data-placement:same-cell;}--> With reference to public good consider the following.
1. These goods are nonrival and nonexcludable.
2. Public parks, streetlight, police protection are examples of Public goods or services.
3. There is problem of free run in public goods.


Select the correct answer using the code given below

• A. 1 Only
• B. 1 and 2
• C. 1 and 3
• D. All of the above.

Answer 1

The correct option is D All of the above.

<!--td {border: 1px solid #ccc;}br {mso-data-placement:same-cell;}--> Public goods or services are such goods or services which are provided by government and are non rival and nonexcludable. Consumption of this good does not reduce the amount available to others. As people cannot be excluded from consumption the problem of free run arises. eg parks, Streetlight and police protection.