Asked by Jayesh Reesaul on May 08, 2024
Verified
Which of the following would not be considered a private good?
A) A pencil
B) A sweater
C) A jeep
D) Cable TV service
Private Good
A product or service that is consumed by a single person or household, excluding others from using it.
Cable TV Service
A system of delivering television programming to consumers via radio frequency signals transmitted through coaxial cables or digital light pulses through fiber-optic cables.
- Establish and identify the differences among private goods, public goods, common resources, and club goods.
Verified Answer
LN
Lexie NicolaMay 08, 2024
Final Answer :
D
Explanation :
Cable TV service is not considered a private good because it is non-rivalrous (one person's consumption does not reduce availability to others) and non-excludable (it's difficult to prevent someone from using the service once it's provided, e.g., through signal encryption). In contrast, a pencil, a sweater, and a jeep are all private goods because they are both rivalrous (one person's consumption reduces availability to others) and excludable (it's easy to prevent others from using them).
Learning Objectives
- Establish and identify the differences among private goods, public goods, common resources, and club goods.
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