What is an example of a public good that the government may provide?

National defense services serve as an example of a public good because they are provided by the government for the benefit of all citizens, and their consumption is non-excludable and non-rivalrous. This means that once national defense is established, it protects everyone within the country regardless of whether they pay taxes or not, and one person benefiting from national defense does not detract from another person's ability to benefit from it.

Public goods are characterized by the difficulty in excluding individuals from their use and the fact that one person's use does not diminish another's enjoyment of the good. National defense exemplifies this because its protective capabilities extend to the entire population without reducing the level of security available to others. In contrast, private transportation services and exclusive educational institutions are examples of services that are provided to individuals based on their ability to pay, making them excludable. Similarly, corporate subsidies are targeted financial assistance to specific businesses, which does not embody the characteristics of a public good that benefits the entire community.