Which of these statements is correct?Public goods are nonrival and nonexcludable.Private goods are nonrival and nonexcludable.Public goods are nonrival and excludable.Public goods are rival and nonexcludable.
Question
Which of these statements is correct?Public goods are nonrival and nonexcludable.Private goods are nonrival and nonexcludable.Public goods are nonrival and excludable.Public goods are rival and nonexcludable.
Solution
The correct statement is: "Public goods are nonrival and nonexcludable."
Here's why:
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Public goods are nonrival: This means that one person's use of the good does not reduce its availability to others. For example, when one person listens to a public radio broadcast, it doesn't prevent others from doing the same.
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Public goods are nonexcludable: This means that once the good is produced, no one can be prevented from using it. For example, once a public park is built, anyone can use it; you can't exclude people from enjoying the park.
The other statements are incorrect because private goods are typically both rival and excludable, and public goods are not excludable or rival.
Similar Questions
Which two statements are correct concerning public and private goods?Question 6Select more than one:a.A private good is rival and excludable.b.A private good is non-rival and excludable.c.A public good is non-rival and non-excludable.d.A public good is rival and non-excludable.
Both public goods and common resources areGroup of answer choicesexcludable.nonrival in consumption.nonexcludable.rival in consumption.
What are the two characteristics that differentiate private goods from public goods?Multiple Choicerivalry and excludabilitynegative externality and positive externalitymarginal cost and marginal benefitownership and usage
What is a public good? A. A good that is excludable and rivalrous B. A good that is excludable but not rivalrous C. A good that is non-excludable and rivalrous D. A good that is non-excludable and non-rivalrous
What term describes goods which are both non-rivalrous and non-excludable by nature? Group of answer choicespublic goodsprivate goodscommon resourcesmarket good
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