National defense is considered a public good because there appear to be no limits to the non-rivalry-in-consumption characteristic, and exclusion of non-payers is impossible.
One of the best examples of a public good is national defense. To the extent one person in a geographic area is defended from foreign attack or invasion, other people in that same area are likely defended also.
This kind of good is called a public good. Spending on national defense is a good example of a public good. Let's begin by defining the characteristics of a public good and discussing why these characteristics make it difficult for private firms to supply public goods.
A public good has two key characteristics: it is nonexcludable and non-rival. Nonexcludable means that it is costly or impossible for one user to exclude others from using the good. Non-rival means that when one person uses the good, it does not prevent others from using it.
What people who call education a public good mean is that there are positive externalities—not all of the benefits accrue to the students. Society benefits when more people go to college. People with a college education earn more than others, but their higher earnings do not reflect the whole of their contribution.Jan 18, 2011
In a competitive economy with no government sector: there will be too few public goods produced. Public goods, like national defense, are usually funded through government because: it is prohibitively difficult to withhold national defense from someone unwilling to pay for it.
In economics, a public good refers to a commodity or service that is made available to all members of a society. Typically, these services are administered by governments and paid for collectively through taxation. Examples of public goods include law enforcement, national defense, and the rule of law.
Public goods are important because they are designed to be available to the public in general and possess specific qualities that prevent individuals or groups from being unable to access them. They also must be able to withstand use without then becoming unavailable to future users.
The benefits of public goods can be easily enjoyed by everyone. The consumption by one individual should not affect the consumption of another individual. Therefore, providing public goods is responsibility of government due to non-rivalry and non-excludable reasons.
A public good is a good that government provides which is both non-excludable and non-rivalrous. Examples of public goods include – defence, policing, streelights, and lighthouses. Governments often seek to provide public goods when there is a market failure.
The national defense is an example of a public good because it is non-excludable and non-rivalrous.
Nonexcludable and nonrival services are also considered “public goods.” National security is an example of a public good. We all benefit from this government service with hardly a second thought.