The distinguishing characteristic of private goods is that
A)they can be sold but not rented.
B)their use is exclusive to the people who purchase them.
C)they can be sold or rented,but not borrowed.
D)the principle of rival consumption does not apply to them.

Question

Quizplus · Accepted Answer

Private goods are characterized by exclusivity, meaning that they can only be used by the people who have purchased them. This is often in contrast to public goods, which are non-excludable and can be used by anyone. Choices A, C, and D are incorrect because they either do not accurately describe private goods or are not relevant to their distinguishing characteristic.

The Distinguishing Characteristic of Private Goods Is That