The definition of a public good or private good depends on the _______ of the good and not on whether it is provided by the _______ or _______ sector.
A) characteristics; nonprofit; private
B) characteristics; public; private
C) supplier; market; public
D) characteristics; private; foreign

Question

Quizplus · Accepted Answer

The classification of a good as public or private depends on its characteristics such as excludability and rivalry in consumption, and not on whether it is provided by the public or private sector. Therefore, option B, which specifies that the definition of a public or private good depends on its characteristics, is the correct answer. Option A is incorrect because the distinction is not based on the sector providing the good, but rather on its characteristics. Option C is incorrect because it confuses the supplier of the good with the sector providing the good. Option D is incorrect because it introduces the concept of foreign provision of goods, which is not relevant to the question.

The Definition of a Public Good or Private Good Depends