What is a private good?
A)A good that is non-excludable and rival
B)A good that is excludable and rival
C)A good that is excludable and non-rival
D)A good that is non-rival and non-excludable

Question

Quizplus · Accepted Answer

A private good is a good that is both excludable and rival. This means that the good can be controlled by the owner and is consumed by one person, preventing others from consuming it at the same time. Examples of private goods include food, clothing, and cars. Option A is incorrect because non-excludable goods, such as clean air, are classified as public goods. Option C is incorrect because a good that is excludable but non-rival is called a club good, and Option D is incorrect because a good that is non-rival and non-excludable is called a public good.

What Is a Private Good