Which of the following statements is correct?
A)Private goods and public goods are both excludable and rival in consumption.
B)Private goods are rival in consumption but not excludable, whereas public goods are excludable but not rival in consumption.
C)Private goods are both excludable and rival in consumption, whereas public goods are neither excludable nor rival in consumption.
D)Private goods are neither excludable nor rival in consumption, whereas public goods are both excludable and rival in consumption.

Question

Quizplus · Accepted Answer

Private goods are goods that are excludable, meaning that it is possible to prevent certain individuals from enjoying the benefits of the good. Private goods are also rival in consumption, meaning that if one person consumes the good, it reduces the amount available for others to consume. Conversely, public goods are non-excludable, meaning that it is not possible to prevent certain individuals from enjoying the benefits of the good. Public goods are also non-rival in consumption, meaning that one person's consumption of the good does not reduce the amount available for others to consume.

Which of the Following Statements Is Correct