Public goods are those for which there:A) is no free-rider problem.B) are no externalities.C) are nonrivalry and nonexcludability.D) are rivalry and excludability.

Question

Public goods are those for which there:A)  is no free-rider problem.B)  are no externalities.C)  are nonrivalry and nonexcludability.D)  are rivalry and excludability.

Birds of Paradise! · Accepted Answer

Final Answer : C, Explanation :  Public goods are goods that are nonrivalrous, meaning that one person's consumption of the good does not reduce the amount available to others, and nonexcludable, meaning that it is difficult to exclude individuals from enjoying the benefits of the good. This leads to the free-rider problem, where individuals can benefit from the good without paying for it, making it difficult for private markets to provide these goods efficiently. There may also be positive externalities associated with public goods, but this is not a defining characteristic of public goods.

Public goods are those for which there:

A) is no free-rider problem.
B) are no externalities.
C) are nonrivalry and nonexcludability.
D) are rivalry and excludability.

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Learning Objectives

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