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If a good is both excludable and nonrival in consumption, then it is?

1) a public good
2) a common good
3) a private good
4) a club good

1 Answer

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Final answer:

A good that is excludable and nonrival in consumption is a club good, which is option 4 in the given choices.

Step-by-step explanation:

If a good is both excludable and nonrival in consumption, it is known as a club good. Excludable means that it is feasible to prevent non-payers from using the good, while nonrivalrous indicates that one person's use does not diminish the availability of the good for others. In contrast, a public good is nonexcludable and nonrival, meaning it is available for anyone to use without being able to exclude non-payers, and one person's use does not affect another's ability to use it. Therefore, for the question at hand, the correct answer is that the good is a club good (option 4).

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