Which two statements are correct concerning public and private goods?Question 6Select more than one:a.A private good is rival and excludable.b.A private good is non-rival and excludable.c.A public good is non-rival and non-excludable.d.A public good is rival and non-excludable.
Question
Which two statements are correct concerning public and private goods?Question 6Select more than one:a.A private good is rival and excludable.b.A private good is non-rival and excludable.c.A public good is non-rival and non-excludable.d.A public good is rival and non-excludable.
Solution
The correct statements are:
a. A private good is rival and excludable. c. A public good is non-rival and non-excludable.
Explanation:
a. A private good is considered rival and excludable because its use by one person decreases its availability for others (rival), and people can be prevented from using it (excludable).
c. A public good is non-rival and non-excludable because one person's use does not decrease its availability for others (non-rival), and people cannot be prevented from using it (non-excludable).
Similar Questions
Which of these statements is correct?Public goods are nonrival and nonexcludable.Private goods are nonrival and nonexcludable.Public goods are nonrival and excludable.Public goods are rival and nonexcludable.
What is a public good? A. A good that is excludable and rivalrous B. A good that is excludable but not rivalrous C. A good that is non-excludable and rivalrous D. A good that is non-excludable and non-rivalrous
What is a private good? A. A good that is excludable and rivalrous B. A good that is excludable but not rivalrous C. A good that is non-excludable and rivalrous D. A good that is non-excludable and non-rivalrous
What is the difference between a public good and a common resource?a. A public good is non-excludable and non-rivalrous, while a common resource is excludable and rivalrousb.A public good is excludable and non-rivalrous, while a common resource is non-excludable and rivalrousc. A public good is non-excludable and rivalrous, while a common resource is excludable and non-rivalrousd. A public good is excludable and rivalrous, while a common resource is non-excludable and non-rivalrous
What are the two characteristics that differentiate private goods from public goods?Multiple Choicerivalry and excludabilitynegative externality and positive externalitymarginal cost and marginal benefitownership and usage
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