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 difference between a public and private good is that the 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. Option A is incorrect as public goods cannot be owned by individuals. Option B is incorrect as private goods are usually produced and sold by corporations or individuals, while public goods are usually provided by the government. Option D is also incorrect as resources are used to produce both types of goods.

Which of the Following Statements Is True About the Difference