Which is an example of a club 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 is an example of a club good?

Explanation:
Club goods are excludable but non-rival in consumption, meaning access can be restricted to members or those who pay, while many people can enjoy the good at the same time without reducing each other’s enjoyment (at least until congestion becomes significant). Pay-per-view in a club fits this: access is limited to club members or paying customers, so it’s excludable, and watching it doesn’t typically prevent others from watching as well, making it non-rival within normal use. In contrast, a public park, national defense, and clean air are classic public goods: they are non-excludable and non-rival, so they don’t match the club-good pattern.

Club goods are excludable but non-rival in consumption, meaning access can be restricted to members or those who pay, while many people can enjoy the good at the same time without reducing each other’s enjoyment (at least until congestion becomes significant). Pay-per-view in a club fits this: access is limited to club members or paying customers, so it’s excludable, and watching it doesn’t typically prevent others from watching as well, making it non-rival within normal use. In contrast, a public park, national defense, and clean air are classic public goods: they are non-excludable and non-rival, so they don’t match the club-good pattern.

More Multiple Choice Questions
Subscribe

Get the latest from Passetra

You can unsubscribe at any time. Read our privacy policy