Which statement best describes club goods?

• A. Non-excludable and non-rival
• B. Excludable and rival
• C. Non-excludable and rival
• D. Excludable and non-rival until congestion

Answer: (D)

Club goods are excludable because access can be restricted by price or membership, while they are non-rival in consumption up to a point—one person’s use doesn’t meaningfully reduce another’s enjoyment. But as more people use the good and congestion occurs, it becomes rival; additional users interfere with others’ enjoyment and capacity is strained. So the best description is excludable and non-rival until congestion, which reflects how access is controlled but competition for limited capacity emerges only once congestion sets in. This also helps distinguish club goods from pure public goods (non-excludable and non-rival) and from private goods (excludable and rival from the start).