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Economics • Economic BasicsEasy

In the context of public economics, what is a 'Public Good' primarily characterized by?

A. Excludability and rivalrous consumption
B. Non-excludability and non-rivalrous consumption✓ Correct Answer
C. Excludability and non-rivalrous consumption
D. Non-excludability and rivalrous consumption

💡 Solution & Explanation

Public goods are defined by non-excludability, meaning individuals cannot be barred from use, and non-rivalrous consumption, where one person's consumption does not diminish availability for others. Private goods, by contrast, exhibit both excludability and rivalry. Basic economic definitions of market failures and public goods appear regularly in competitive exams.

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