Which of the following is/are an example of public goods?

a) Defense

b) House  

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SSC CHSL Exam 2024 Tier-I Official Paper (Held On: 10 Jul, 2024 Shift 1)
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  1. Only b 
  2. Neither a nor b
  3. Both a and b
  4. Only a

Answer (Detailed Solution Below)

Option 4 : Only a
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Detailed Solution

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The correct answer is Only a.

Key Points

  • A public good is a commodity or a service provided to the Citizen without any intention of making a profit out of it.
  • Electricity is not provided free. People pay for the service or the unit of electricity they consume.
  • National Defence, Light House, and Public Parks are examples of Public goods as people are not charged for them by the government.
  • Public goods are non-excludable, individuals may benefit without contributing to their provision, leading to the "free rider problem." This can result in underfunding and insufficient supply of these goods.

Additional Information

Type of Goods Characteristics Examples
Public Goods - Non-excludable
- Non-rivalrous
National defense, public parks, street lighting
Private Goods - Excludable
- Rivalrous
Food, clothing, electronics
Mixed Goods - Some aspects are non-excludable
- Some aspects are rivalrous
Education, healthcare, public transportation
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