Which of the following statements is TRUE about the difference between a public and private good?
A) Both public and private goods are owned by individuals but public goods can be shared while private goods cannot be shared.
B) The government produces private goods while corporations produce public goods.
C) Consumption of a private good by one person reduces the amount available for others while the consumption of a public good does not reduce the amount available for others.
D) Resources are used to produce private goods but are not used to produce public goods.

Question

Quizplus · Accepted Answer

The consumption of a private good by one person does reduce the amount available for others, while the consumption of a public good does not. This is because private goods are rivalrous, meaning one person's consumption reduces the amount available for others, while public goods are non-rivalrous, meaning one person's consumption does not reduce the amount available for others. The other statements in the options are not accurate.

Which of the Following Statements Is TRUE About the Difference