Which characteristic applies to a public good?

Unlock all questions

This demo includes only 20 questions. Upgrade to access hundreds of questions, flashcards, exam simulations, and disable ads.

Full question bankExam simulationsFlashcards
From $25.99Unlock all

Prepare for the AP Microeconomics exam on Market Failure and the Role of Government with detailed quizzes featuring multiple-choice questions, hints, and explanations. Master your understanding and ace the test!

Multiple Choice

Which characteristic applies to a public good?

Explanation:
Public goods are defined by two properties: non-excludability and non-rivalry. Non-excludable means you can’t feasibly prevent people from benefiting once the good is provided, even if they don’t pay. Non-rivalrous means one person’s consumption does not reduce the amount available for others. Because of these features, private markets tend to underprovide public goods since individuals can free-ride, relying on others to pay. That’s why governments often supply or finance them through taxes. In contrast, a private good is excludable and rivalrous: you can keep non-payers out, and one person’s use reduces another’s. A common resource is non-excludable but rivalrous: you can’t easily exclude anyone, but one person’s use can reduce others’ enjoyment. A club or toll good is excludable and non-rivalrous: you can restrict access, and one person’s use doesn’t significantly affect others (up to capacity limits).

Public goods are defined by two properties: non-excludability and non-rivalry. Non-excludable means you can’t feasibly prevent people from benefiting once the good is provided, even if they don’t pay. Non-rivalrous means one person’s consumption does not reduce the amount available for others. Because of these features, private markets tend to underprovide public goods since individuals can free-ride, relying on others to pay. That’s why governments often supply or finance them through taxes.

In contrast, a private good is excludable and rivalrous: you can keep non-payers out, and one person’s use reduces another’s. A common resource is non-excludable but rivalrous: you can’t easily exclude anyone, but one person’s use can reduce others’ enjoyment. A club or toll good is excludable and non-rivalrous: you can restrict access, and one person’s use doesn’t significantly affect others (up to capacity limits).

More Multiple Choice Questions
Subscribe

Get the latest from Passetra

You can unsubscribe at any time. Read our privacy policy