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

    ⚡ Month End Offer - Flat 52% Off On All Courses! Enroll Now ⚡
    00:00:00 AM Left

    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
    More Financial Management Questions
    ask-question