Asked by Eveleen Zapata on May 27, 2024
Verified
Nonrivalry and nonexcludability are the main characteristics of
A) consumption goods.
B) capital goods.
C) private goods.
D) public goods.
Nonrivalry
A characteristic of a good or service whereby its consumption by one individual does not reduce its availability for consumption by others.
Nonexcludability
The inability to keep nonpayers (free riders) from obtaining benefits from a certain good; a characteristic of a public good.
Public Goods
Goods that are non-excludable and non-rivalrous, meaning they are available to all members of society and one person's consumption does not reduce availability for others.
- Apprehend the description, instances, and elements of public goods.
- Achieve comprehension of the economic aspects of nonrivalry and nonexcludability, as they pertain to public goods.
Verified Answer
TB
Turky BasahelJun 01, 2024
Final Answer :
D
Explanation :
Nonrivalry means that the consumption of a good by one individual does not reduce the availability of the good to others. Nonexcludability means that it is difficult, if not impossible, to prevent non-paying individuals from consuming the good. Public goods possess both of these characteristics, making them distinct from private goods (which are rival and excludable) and capital goods (which are neither consumed nor excluded).
Learning Objectives
- Apprehend the description, instances, and elements of public goods.
- Achieve comprehension of the economic aspects of nonrivalry and nonexcludability, as they pertain to public goods.