Question

Public goods are both nonrival and nonexcludable. Since some pools are subject to congestion, they can be considered rival. In addition, most pools require a membership, identification, or admission fee before entry, which makes them excludable."What characteristic defines public goods as nonrival and nonexcludable?

a) Congestion-free access
b) Membership requirement
c) Absence of rivalry and exclusion
d) Congestion and admission fees

Answer 1

The defining characteristic of public goods is the absence of rivalry and exclusion, meaning they are nonrival and nonexcludable, which allows them to be accessed by anyone without diminishing their availability to others.

Step-by-step explanation:

The characteristic that defines public goods as nonrival and nonexcludable is c) Absence of rivalry and exclusion.Public goods have two main characteristics: they are nonexcludable and non-rival. Nonexcludable means it is very costly or impossible to prevent someone from using the good, and non-rival means that the use of the good by one person does not reduce its availability to others.

An example of a public good is national defense; it serves everyone and cannot exclude individuals based on use or non-use. This contrasts with private goods, such as a pizza, where consumption by one person prevents others from enjoying the same slice. The challenge with public goods is that markets struggle to provide them efficiently due to the free-rider problem, where individuals may benefit from the public good without contributing to its costs. Governments and other organizations often step in to ensure that public goods are funded and available to all.