Which statement about private and public goods is accurate?

• A. Private goods are non-excludable.
• B. Public goods are excludable.
• C. Private goods are excludable and rival; public goods are non-excludable and non-rival.
• D. Public goods never face the free rider problem.

Answer: (C)

The key idea is how a good’s excludability and rivalry shape whether it’s private or public. Private goods are both excludable (owners can prevent others from using them) and rival in consumption (one person’s use reduces another’s available amount). Public goods, on the other hand, are non-excludable (you can’t easily prevent people from benefiting) and non-rival (one person’s use doesn’t diminish another’s).

The statement that private goods are excludable and rival, while public goods are non-excludable and non-rival, matches these definitions exactly. For example, food is excludable and rival; a lighthouse is non-excludable and non-rival.

The other statements conflict with these facts: private goods are not non-excludable, so the first choice is incorrect; public goods are not excludable, so the second choice is incorrect; and public goods do face the free rider problem, so the fourth choice is incorrect.