📢 Too many exams? Don’t know which one suits you best? Book Your Free Expert 👉 call Now!

  • google app store apple app store

    • Question

      Which of the following is/are characteristics of a

      Public good?  1)Non-excludability 2)Non rival Consumption 3)Non rejectable Select the correct answer using the code given below:
      A 1 only Correct Answer Incorrect Answer
      B 1 and 2 only Correct Answer Incorrect Answer
      C 2 and 3 only Correct Answer Incorrect Answer
      D 1 and 3 only Correct Answer Incorrect Answer
      E 1, 2 and 3 Correct Answer Incorrect Answer

      Solution

      Public goods are goods that can be consumed simultaneously by a large number of people without the consumption by one imposing an opportunity cost on others. The characteristics of a public good: ●Non excludability i.e., the citizens can enjoy its benefits at no explicit financial cost. ●Non rival consumption i.e., the marginal cost of supplying this public good to an extra citizen is zero. ●Non-Rejectable i.e., collective supply for all citizens means that it cannot be rejected.

      Practice Next
      ask-question