Which of the following is true with respect to the rationing problem in case of a public good?
A)The rationing problem associated with a public good is greater than a private good.
B)The rationing problem does not exist in case of a public good.
C)The rationing problem in case of a public good can be solved through taxation.
D)The rationing problem increases with an increase in the number of people consuming the good.

Question

Quizplus · Accepted Answer

Public goods are non-excludable and non-rivalrous, meaning that once they are provided, it is not possible to exclude anyone from using them, and one person's use does not reduce availability to others. Therefore, there is no rationing problem as everyone can consume the good simultaneously without limiting others' consumption.

Which of the Following Is True with Respect to the Rationing