please explain also 5 Which of the following statement IS co

please explain also...

5 Which of the following statement IS correct? (a) ll a good is public then consumption by one person does not reduce the amount available for other people (b) A public good is a good thal the govemment pays for. (c) Congested roads carrying a large amount of traffic are public goods. (d) A public good is a good produced by the govemment.

Solution

(A), A public good must be available for everyone and not be limited in quantity. It should be non-excludable i.e., product or service that is impossible to provide without it being available for many people to enjoy. An example is a dam built on a river.