Goods can be classified on the basis of whether their consumption is

Question

Quizplus · Accepted Answer

Goods can be classified based on two characteristics: excludability and rivalry. Excludability refers to the ability of a seller to prevent non-payers from consuming a good, while rivalry refers to the fact that the consumption of a good by one person reduces the amount available for others. Based on these characteristics, goods can be classified into four types: private goods (excludable and rival), public goods (non-excludable and non-rival), common resources (non-excludable and rival), and club goods (excludable and non-rival). Therefore, the best choice would be D, which refers to the goods that are both rival and excludable, such as food, clothing, and cars.

Goods Can Be Classified on the Basis of Whether Their