A fundamental aspect of public goods is that they
A) are just like private goods EXCEPT that everybody wants to consume the same amount.
B) have positive externalities.
C) are characterized by the principle of rival consumption.
D) can be consumed jointly by many people simultaneously.

Question

Quizplus · Accepted Answer

Public goods can be consumed jointly by many people simultaneously, meaning that the consumption of one person does not reduce the availability or usefulness of the good to others. This is known as non-rival consumption. Option A is incorrect as public goods are not like private goods in terms of rivalry and excludability, which are two key characteristics of private goods. Option B is incorrect as positive externalities are a separate concept from public goods. Option C is incorrect as public goods are not characterized by rival consumption, but rather non-rival consumption.

A Fundamental Aspect of Public Goods Is That They