A pure public good is nonrival, meaning the consumption of the good by one individual does not diminish the ability of others to consume the same good, and nonexclusive, meaning individuals cannot be excluded from consuming the good. It is typically provided by the government and financed through tax revenues. It provides the same level of welfare to each user.

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A Pure Public Good

Question 4

Multiple Choice

A pure public good:

A) is provided by private firms for the benefit of the public.
B) exhibits diminishing individual benefits the greater the number of users.
C) is nonrival and nonexclusive.
D) provides the same level of welfare to each user.
E) is financed by tax revenues rather than individual user fees.

Correct Answer: