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Q95 (CDS-I/2016) Economy › Basic Concepts & National Income › Consumer theory basics Answer Verified

Which of the following is not a ‘Public Good’ ?

Result
Your answer:  ·  Correct: A
Explanation

A public good is defined by two primary characteristics: it must be non-rivalrous (one person's consumption does not reduce availability for others) and non-excludable (it is impossible or costly to prevent non-payers from using it) [2]. National defense is a classic example because its protection covers all citizens regardless of payment [2]. Lighthouses and public parks are also generally classified as public goods because they are accessible to all and one person's use does not significantly diminish another's. In contrast, electricity is not a public good because it is both rivalrous and excludable. Consumption of a unit of electricity by one household makes it unavailable for another, and utility companies can easily exclude individuals from the service for non-payment by cutting off the supply. Therefore, electricity is classified as a private good or a club good rather than a pure public good.

Sources

  1. [1] Indian Economy, Vivek Singh (7th ed. 2023-24) > Chapter 9: Subsidies > 9.1 Introduction > p. 284
  2. [2] Macroeconomics (NCERT class XII 2025 ed.) > Chapter 5: Government Budget and the Economy > Debt > p. 81
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