Which of the following is a property of a public good?
A) It is established by legislation.
B) Free riders are excluded.
C) Users collectively consume benefits.
D) It is determined by positive economics.

Question

Quizplus · Accepted Answer

A public good is characterized by the fact that the benefits of its consumption are non-excludable (meaning that no one can be prevented from using it) and non-rivalrous (meaning that one person's use does not diminish the availability of the good for others). This leads to a situation in which users collectively consume the benefits of the public good, making it difficult to charge individuals for its use and creating the potential for free ridership. Legislation may establish or regulate aspects of a public good, but it is not inherently necessary for it to qualify as such. Positive economics may be used to analyze or predict the effects of public goods, but it is not a defining characteristic.

Which of the Following Is a Property of a Public