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    Question

    Which of the following is/are characteristics of a

    Public good?┬а 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: тЧПNon excludability i.e., the citizens can enjoy its benefits at no explicit financial cost. тЧПNon rival consumption i.e., the marginal cost of supplying this public good to an extra citizen is zero. тЧПNon-Rejectable i.e., collective supply for all citizens means that it cannot be rejected.

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