10 Questions
What characteristic defines a public good?
Nonrival and nonexcludable
What is a key reason why markets do not exist for nonexclusive public goods like clean air?
They are nonexcludable
Which type of good is subject to exclusion but is nonrival in consumption?
Club good
What does the social demand curve for a public good represent?
Individual demand curves added vertically
In what scenario can markets exist for public goods?
When nonpurchasers can be excluded
Why can too little production occur when it comes to public goods?
When producers can't restrict access
What does a private good possess that a public good does not?
Both rivalry and excludability
Which type of intervention is rare when it comes to regulating club goods?
Government intervention
Which type of good produces a positive externality?
Public good
Why is excluding anyone from consuming a public good considered inefficient?
It results in lost societal benefits.
Test your knowledge on club goods and public goods with this quiz. Explore the differences between nonrival but excludable goods and commodities or services that are non-excludable and nonrival in consumption.
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