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3. Which of the following statements is TRUE according to economic theory?
I. National defense is a public good.
II. For every 100 people that use a public good, approximately 500 people are prevented
from using it.
III. If the government did not pay for national defense, it would not exist.
a. I, II, and III
b. III only
c. I and III only
d. I and II only

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