Public goods are those for which there
A) is no free-rider problem.
B) are no externalities.
C) are nonrivalry and non excludability.
D) are rivalry and excludability.

Question

Quizplus · Accepted Answer

Public goods are goods that are nonrivalrous (consumption by one person does not diminish the availability for others) and nonexcludable (difficult to prevent people from using them). Examples of public goods include national defense, lighthouses, and public parks. Because they are nonexcludable, it is difficult for individuals to be excluded from using them, thus causing a free-rider problem where individuals can benefit from the good without contributing to its production or funding. This is why public goods are often provided by the government rather than the market.

Public Goods Are Those for Which There