Assume that there is no way to prevent someone from using an interstate highway,regardless of whether or not she helps pay for it.This characteristic is associated with:
A) rival goods.
B) complementary goods.
C) public goods.
D) capital goods.

Question

Quizplus · Accepted Answer

Public goods are non-excludable, meaning that it is difficult or impossible to prevent people from using them, regardless of whether or not they help pay for them. This characteristic makes public goods different from private goods, which are excludable and can be restricted to those who pay for them. In this scenario, it is not possible to exclude anyone from using the interstate highway, so it fits the definition of a public good. Rivalry (or the idea that one person's use of a good diminishes its availability to others) is not a relevant characteristic in this context. Complementary goods are goods that are typically used together (like peanut butter and jelly), and capital goods are goods used to produce other goods and services. Neither of these concepts applies to the scenario described.

Assume That There Is No Way to Prevent Someone from Using