Asked by Elisabeth breivik Nilsen on Jul 04, 2024
Verified
Public goods are those for which there
A) is no free-rider problem.
B) are not any externalities.
C) is nonrivalry and nonexcludability.
D) is rivalry and excludability.
Nonrivalry
A property of goods where one person's consumption does not prevent consumption by others, typically relevant in the context of public goods.
Nonexcludability
Nonexcludability is a feature of public goods where it is not possible to prevent individuals from consuming the good, irrespective of whether they have contributed to its provision.
Public Goods
Goods that are non-excludable and non-rivalrous, meaning no one can be effectively excluded from use and use by one does not reduce availability to others.
- Absorb the meaning, examples, and traits of public goods.
- Master the concepts of nonexcludability and nonrivalry as applied to public goods.
Verified Answer
ZK
Zybrea KnightJul 05, 2024
Final Answer :
C
Explanation :
Public goods are defined by their characteristics of nonrivalry, meaning that one person's use of them does not diminish their availability to others, and nonexcludability, meaning that it is difficult to prevent people from accessing and benefiting from them, even if they do not contribute to their provision. Free-rider problems, where some individuals benefit from a good without paying for it, are a common issue with public goods. Externalities, which are effects of a good that impact people who are not involved in its production or consumption, may be present but are not a defining characteristic of public goods. Rivalry and excludability are characteristics of private goods, which are the opposite of public goods.
Learning Objectives
- Absorb the meaning, examples, and traits of public goods.
- Master the concepts of nonexcludability and nonrivalry as applied to public goods.