Final answer:
National defense spending is an example of a public good, provided by the government due to its non-excludable and non-rivalrous characteristics that make private provision unfeasible. The correct answer is option: 1) national defense spending.
Step-by-step explanation:
An example of a public good, in an economic context, would be national defense spending. Public goods are typically provided by the government because they offer a benefit to the entire population that is not easy to divide and charge for individually.
National defense is an excellent illustration of a public good, as it is difficult to imagine how a private company could effectively protect a country against foreign threats, build its own military, and manage intelligence and defense strategies without relying on the collective resources and authority of a national government.
Public goods are characterized by their non-excludability and non-rivalrous consumption, meaning they are available to all and one person's consumption does not reduce another’s ability to consume the same good.