Final answer:
National defense is considered a public good due to its nonexcludable and nonrivalrous nature, benefiting all individuals once provided.
Explanation:
National defense is a public good because it is nonexcludable and nonrivalrous, meaning that once provided, it benefits everyone and additional consumers at no extra cost. It is under-produced unless the government intervenes to provide it. For example, private businesses cannot effectively build armies or create defense plans.
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