Multiple Choice
Which of the following is an example of a durable good?
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8. The Types of Goods
Four Types of Goods and Two Characteristics
Multiple Choice
What is a public good?
A
A good that is nonrivalrous and nonexcludable; one person's consumption does not reduce others' use and people cannot be easily excluded
B
A good that is nonrivalrous but excludable; multiple people can consume without reducing availability but access can be restricted
C
A good that is rivalrous but nonexcludable; individuals' use reduces availability but people cannot be easily excluded
D
A good that is rivalrous and excludable; consumption by one person reduces availability and access can be restricted
Verified step by step guidance1
Step 1: Understand the key characteristics of a public good. Public goods are defined by two main properties: nonrivalry and nonexcludability.
Step 2: Nonrivalry means that one person's consumption of the good does not reduce the amount available for others. In other words, multiple people can consume the good simultaneously without diminishing its availability.
Step 3: Nonexcludability means that it is difficult or impossible to prevent people who have not paid for the good from consuming it. Access to the good cannot be easily restricted.
Step 4: Compare the options given with these definitions. The correct description of a public good must include both nonrivalry and nonexcludability.
Step 5: Identify the option that states the good is nonrivalrous and nonexcludable, meaning one person's consumption does not reduce others' use and people cannot be easily excluded.
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