A public good
A) is a good that is usually consumed in public, such as a restaurant meal.
B) is a good people can consume even if they do not pay for it.
C) is a good produced by government.
D) results in an efficient allocation of resources.
E) is a good for which people are willing to pay a very high price.

Question

Quizplus · Accepted Answer

A public good is a good that is non-excludable, meaning that individuals cannot be prevented from consuming it, and non-rivalrous, meaning that consumption by one individual does not reduce the amount available for others to consume. As a result, individuals can still benefit from the good even if they do not contribute to its production or payment. A restaurant meal, on the other hand, is a private good that is both excludable and rivalrous. The other options listed are also not accurate definitions of a public good.

A Public Good