The distinguishing characteristic of private goods is that
A) the principle of rival consumption does not apply to them.
B) their use is exclusive to the people who purchase them.
C) they can be sold but not rented.
D) they can be sold or rented, but not borrowed.

Question

Quizplus · Accepted Answer

Private goods are characterized by the fact that their use is exclusive to the people who buy them. This means that once someone purchases a private good, they have the right to exclude others from using that good. This is in contrast to public goods, which are non-excludable and available to all members of society regardless of whether they contribute to their provision. The other choices (A, C, and D) are not accurate descriptions of private goods.

The Distinguishing Characteristic of Private Goods Is That