Asked by hector batalla on Apr 28, 2024
Verified
A key feature of a public good is:
A) overproduction in the private market.
B) rival consumption.
C) payment through charitable contributions.
D) nonexclusion.
Public Good
A good that is non-excludable and non-rivalrous, meaning individuals cannot be effectively excluded from its use and one person's use does not diminish its availability to others.
Nonexclusion
A characteristic of certain goods where it is difficult or impossible to exclude individuals from using the good, often leading to issues with free riders.
- Discern the distinctions among private goods, public goods, common resources, and artificially scarce goods based on their characteristics regarding excludability and consumption competition.
- Expound on the problem of free-riders and how it impacts the delivery of public goods.
Verified Answer
GS
Gabriela SonzogniApr 29, 2024
Final Answer :
D
Explanation :
A key feature of a public good is nonexclusion, meaning that it is not possible to prevent individuals or groups from benefiting from the good or service, even if they do not contribute to the cost of producing it. Public goods are typically not produced in sufficient quantities by the private market due to the lack of financial incentives, which leads to market failure. Rival consumption, on the other hand, refers to the fact that the consumption of private goods reduces the amount available for others to consume, while public goods can be consumed by an unlimited number of individuals without diminishing the resource for others. Payment through charitable contributions may occur, but it is not a defining characteristic of public goods.
Learning Objectives
- Discern the distinctions among private goods, public goods, common resources, and artificially scarce goods based on their characteristics regarding excludability and consumption competition.
- Expound on the problem of free-riders and how it impacts the delivery of public goods.
Related questions
(Table: Total Cost and Total Individual Benefit)Use Table: Total Cost ...
Given That Most People Like to Get 'Free Stuff,' It ...
The Pollution Market Failure Is an Example of the Free ...
Because People Can Enjoy the Benefits of Public Goods Whether ...
________ Arises When People Realize They Will Still Receive the ...