Question

Classifying a good as excludable means

that someone can be barred from consuming the good based on race, creed, or some other irrelevant characteristic.

that consumption of the good causes no externalities.

that a producer with patent or copyright protection can exclude any other producer from selling his product.

that anyone who does not pay for the good cannot consume it.

Answer 1

Excludable goods can be restricted to those who pay for them, while public goods are nonexcludable and include everyone in their benefits.

Step-by-step explanation:

Excludable goods are goods that have limited access and can be restricted to only those who pay for them. They can exclude people from consuming them based on various factors such as payment. Examples of excludable goods include satellite radio services sold by subscription fee, private education, and cell phone service that excludes non-payers.

On the other hand, public goods have two defining characteristics: they are nonexcludable and non-rival. Nonexcludable means that it is difficult or impossible to exclude someone from using the good. For instance, national defense protects everyone, even if they disagree with defense policies or spending levels. Despite personal preferences, individuals cannot choose to be unprotected from national defense and it cannot exclude anyone.

In summary, excludable goods can bar someone from accessing them based on payment or other relevant factors, while public goods are nonexcludable, including everyone in their benefits.