Common resources differ from public goods in that
A)common resources are nonexcludable while public goods are excludable to those who do not pay for the good.
B)unlike public goods, common resources are rival in consumption.
C)common resources are collectively owned by a group of people while public goods are government owned.
D)common resources are resources that cannot be renewed but the production of public goods can be increased any time.

Question

Quizplus · Accepted Answer

Common resources are rival in consumption, meaning that the use of the resource by one person reduces the amount available for others. Public goods, on the other hand, are non-rival in consumption, meaning that one person's use does not reduce its availability to others. Option A is incorrect as it is the opposite of the true distinction. Option C is also incorrect as public goods are not necessarily owned by the government. Option D is incorrect as both common resources and public goods may or may not be renewable or have limits to production.

Common Resources Differ from Public Goods in That