Asked by labiba rabbi on Jun 26, 2024
Verified
Nonexcludability describes a condition where
A) one person's consumption of a good does not prevent consumption of the good by others.
B) there is no effective way to keep people from using a good once it comes into being.
C) sellers can withhold the benefits of a good from those unwilling to pay for it.
D) there is no potential for free-riding behavior.
Nonexcludability
is a characteristic of public goods where it is impossible to prevent individuals from enjoying the benefits of a good or service, regardless of whether they have paid for it.
Free-riding
The act of benefiting from the efforts, costs, or contributions of others without making a fair contribution oneself, often seen in public goods scenarios.
- Familiarize yourself with the economic theories of nonrivalry and nonexcludability in the framework of public goods.
Verified Answer
JR
Jadia RobinsonJun 30, 2024
Final Answer :
B
Explanation :
Nonexcludability refers to the inability to prevent individuals from accessing a good once it has been produced, meaning that it is not possible to exclude non-paying individuals from using the good.
Learning Objectives
- Familiarize yourself with the economic theories of nonrivalry and nonexcludability in the framework of public goods.