An artificially scarce good is similar to a public good in that it is _____,but it is also similar to a private good in that it is _____.
A)nonrival in consumption;nonexcludable
B)nonrival in consumption;excludable
C)excludable;nonrival in consumption
D)nonexcludable;rival in consumption

Question

Quizplus · Accepted Answer

An artificially scarce good is a good that is made artificially scarce through a variety of means such as intellectual property rights, exclusive licensing agreements, or other legal restrictions. This makes it similar to a private good in that it is excludable, meaning that access to the good can be restricted or controlled. However, it is also similar to a public good in that it is nonrival in consumption, meaning that the consumption of one individual does not decrease the availability of the good for others. Therefore, the best choice is B, which describes a good that is nonrival in consumption and excludable.

An Artificially Scarce Good Is Similar to a Public Good