One characteristic of a public good is that it
A) is available for consumption by only a few individuals at any particular time.
B) always eliminates the free-rider problem.
C) can be consumed simultaneously by many individuals.
D) can be easily subdivided into small units.

Question

Quizplus · Accepted Answer

A public good is a good or service that can be consumed simultaneously by many individuals without reducing the availability of the good to others. This characteristic is known as non-excludability. Therefore, option C is the correct choice. Options A and D are incorrect because a public good cannot be easily subdivided into small units, and it is not available for consumption by only a few individuals at any particular time. Option B is incorrect because public goods are prone to free-rider problems, which means that some individuals can benefit from the good without paying for it, making it difficult to finance the production of public goods.

One Characteristic of a Public Good Is That It