1)Why is national defense called a public externality? 2)An apartment owner advertises for lawn mowing services for a number of apartments he owns

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1)Why is national defense called a public externality?

2)An apartment owner advertises for lawn mowing services for a number of apartments he owns. He has some idea of the going price and so he advertises that he will pay $100 per month per apartment complex. So why is he disappointed that the winning contractor only provides minimal services? (Keyword for the answer is adverse selection.)