In deciding whether something is a public good, which of the following must one determine? (i) the number of beneficiaries
(ii) the value of external benefits which accrue to resource owners
(iii) the excludability of the beneficiaries
A) (i) and (ii)
B) (i) and (iii)
C) (ii) and (iii)
D) (i), (ii) and (iii)

Question

Quizplus · Accepted Answer

To determine whether something is a public good, one must consider the number of beneficiaries (i) to assess whether it is non-excludable, and the excludability of beneficiaries (iii), which is a defining characteristic of a public good. The value of external benefits which accrue to resource owners (ii) is not a factor in determining whether something is a public good, though it may be relevant in assessing its overall desirability.

In Deciding Whether Something Is a Public Good, Which of the Following