What are the two characteristics that distinguish public goods from private goods?
A) Liability rules and lawsuits
B) The Coase theorem and efficiency
C) Positive and negative externalities
D) Nonrivalry and nonexcludability

Question

Quizplus · Accepted Answer

The two characteristics that distinguish public goods from private goods are nonrivalry and nonexcludability. Nonrivalry means that the consumption of the good by one individual does not reduce the amount available for others to consume, and nonexcludability means that it is difficult or impossible to prevent individuals from accessing the good, even if they do not pay for it. These characteristics make it difficult for private markets to provide public goods efficiently, leading to a potential role for government intervention. A, B, and C are not characteristics that distinguish public goods from private goods.

What Are the Two Characteristics That Distinguish Public Goods from Private