Which characteristic defines a public good?

Multiple choice question for Market. Select an option, then review the explanation below.

Show Answers

It is supplied by governmental authoritiesIt is available at no chargeIt is both non-excludable and non-rivalrous in consumptionIt generates external costsIt is privately owned

Explanation

A public good is distinguished by its non-excludability and non-rivalrous nature, meaning that individuals cannot be prevented from using it, and one person's use does not reduce availability to others.

Practice related questions from the same subject.

1.Broadcasting firms use satellite TV subscriptions and signal detection tools primarily to combat which issue?
2.Which of the following is a classic example of a public good?
3.Which of the following factors can lead to market failure?
4.When a neighbor burns yard debris and smoke enters your home, what type of externality does this represent?
5.Why is a competitive equilibrium considered Pareto efficient?

Which characteristic defines a public good?

Explanation

More Market MCQs