Learning Path
Question & Answer1
Understand Question2
Review Options3
Learn Explanation4
Explore TopicChoose the Best Answer
A
They are excludable
B
They are rivalrous
C
They are non-excludable
D
They can be provided by the private sector
Understanding the Answer
Let's break down why this is correct
Answer
A defining characteristic of public goods is that they are non-excludable and non-rivalrous. This means that once a public good is provided, everyone can use it without anyone being able to be excluded from using it. For example, think about a lighthouse: once it shines its light, all ships in the area benefit from it, and one ship's use of the light does not reduce its availability for others. Because people can enjoy the benefits of public goods without having to pay for them, some individuals may choose not to contribute to their funding, hoping others will pay instead. This leads to the "free rider problem," where too few people support the good, risking its availability for everyone.
Detailed Explanation
Public goods are non-excludable, which means people cannot be easily stopped from using them. Other options are incorrect because Some might think public goods are excludable, meaning you can keep people out; It might seem like public goods are rivalrous, meaning one person's use takes away from another's.
Key Concepts
Non-excludability
Topic
Public Goods and Free Rider Problem
Difficulty
easy level question
Cognitive Level
understand
Ready to Master More Topics?
Join thousands of students using Seekh's interactive learning platform to excel in their studies with personalized practice and detailed explanations.