Which of the following is an example of a pure private good?
A) national defense
B) the Florida State Turnpike, a non-congested toll freeway
C) Lake Erie
D) the Metropolitan Museum of Art in New York City
E) the new heat pump your neighbor bought for her house

Question

Quizplus · Accepted Answer

A pure private good is a good that is both excludable (meaning access to it can be restricted) and rival (meaning consumption by one individual reduces the availability for others). A heat pump for a personal residence is excludable, as the neighbor can choose to limit access only to themselves, and it is rival as it consumes a finite amount of energy, reducing the availability for others. The other options either have non-excludable elements (national defense, Lake Erie) or non-rival elements (Metropolitan Museum of Art). The Florida State Turnpike could be considered a close contender as a pure private good, but it is possible for the freeway to become congested and non-rival if too many individuals attempt to use it at the same time.

Which of the Following Is an Example of a Pure