Asked by Daniel Klucker on Apr 30, 2024
Verified
A good that is excludable but not rival is known as a club good.
Excludable
A characteristic of a good or service that allows the owner or provider to prevent others from using it without permission.
Rival
A characteristic of a good or service that implies its consumption by one individual prevents simultaneous consumption by another individual.
- Understand the concept of excludability and rivalry in goods.
- Recognize the attributes and instances of club goods.
Verified Answer
ZK
Zybrea KnightMay 05, 2024
Final Answer :
True
Explanation :
Club goods are excludable because they can prevent people who do not pay from using them, but they are not rival in consumption, meaning one person's use does not diminish the ability of another person to use the good.
Learning Objectives
- Understand the concept of excludability and rivalry in goods.
- Recognize the attributes and instances of club goods.