Question

Which of the following is a list of private goods only?

A) a watermelon, toll highways, a private beach, a chair.
B) a watermelon, cable Internet service, a private beach, a pencil, a chair.
C) a watermelon, a chair, a pencil.
D) online video games, a watermelon, a private beach, a pencil, a chair.

Answer 1

Private goods are goods that are both excludable and rivalrous in consumption. In the given options, option A includes goods that are privately owned and can be restricted to certain individuals.

Step-by-step explanation:

The correct answer is A) a watermelon, toll highways, a private beach, a chair.

Private goods are goods that are both excludable and rivalrous in consumption. Excludable means that access to the good can be restricted and provided only to those who pay for it. Rivalrous in consumption means that the consumption of the good by one individual reduces its availability for others. In the given options, option A includes goods that are privately owned and can be restricted to certain individuals, making it a list of private goods only.

Answer 2

C) a watermelon, a chair, and a pencil is a list of private goods only.

Explanation:

In Economics, private goods are goods that need to be purchased for consumption, and if an individual is consuming it, then the other individuals cannot consume it. These goods are also considered as excludable which means that if a user has bought it, he/she can prohibit its use from the public through ownership rights. The owner could be an individual or a group of individuals.

By applying the above definition, it is clear that C is the only alternative that consists of private goods only, that is, A watermelon, a chair, and a pencil.