One important feature that distinguishes a private good from a public good is that
A) only the government can produce private goods.
B) nobody can be excluded from enjoying the benefits of a private good.
C) a private good is excludable and a public good is nonexcludable.
D) if you consume a unit of a private, that means there is no less for someone else.
E) a private good is nonrival and a public good is rival.

Question

Quizplus · Accepted Answer

The defining characteristic that distinguishes a private good from a public good is the excludability. Private goods are excludable - meaning that people can be prevented from using them if they do not pay for them - while public goods are nonexcludable - meaning that it is difficult to prevent people from using them even if they do not contribute to their provision. Items A, B, D, and E are incorrect as they either do not address the excludability issue or are incorrect in their statements.

One Important Feature That Distinguishes a Private Good from a Public