An essential characteristic of a public good is that it is non-excludable. This means that A....

Question:

An essential characteristic of a public good is that it is non-excludable. This means that

A. public goods are of equal benefit to all consumers.

B. there is no opportunity cost in the provision of public goods.

C. people could consume the good without paying for it.

D. the government should not levy a tax for providing public goods.

Government:

Government is an institution that provides various types of goods and services in the economy. These goods and services provided by the government are known as public goods and have major characteristics of non-excludability and non-rivalry.

Answer and Explanation: 1

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  • The correct option is C. People could consume the good without paying for it.

Public goods have two main characteristics- Non-rivalry and...

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Public Good in Economics: Definition, Theory & Examples

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Chapter 3 / Lesson 64
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Learn the definition of a public good and understand the theory of public goods. Explore the characteristics of public goods and review various examples.


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