Which of the following statements is (are) TRUE?
I. A club good, such as golf, is nonexcludable and rival.
II. A private good is excludable and rival.
III. School is a public good.
IV. Common resources are excludable and nonrival.
A) I and II
B) II, III, and IV
C) II
D) II and IV

Question

Quizplus · Accepted Answer

II. A private good is excludable and rival. This is a true statement as private goods are defined by their ability to be withheld (excludable) from those who do not pay for them, and their consumption by one individual prevents another individual from consuming the same unit (rival). The other statements are incorrect because: I. A club good is excludable and nonrival, not nonexcludable and rival. III. School is typically considered a non-rival but excludable good, making it more of a club good than a public good, which is both non-excludable and non-rival. IV. Common resources are nonexcludable and rival, not excludable and nonrival.

Which of the Following Statements Is (Are) TRUE