A public good is ?
Correct answer: A. neither rival nor excludable
- A. neither rival nor excludable
- B. rival but not excludable.
- C. both rival but excludable
- D. not rival but excludable
Explanation
A public good is both non-rival, so one person's use does not reduce another's, and non-excludable, so non-payers cannot easily be prevented from benefiting. National defense is a standard example.
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Individual consumers, firms and markets are examined through demand and supply, elasticity, consumer choice, production, costs, revenue and the determination of prices and output. The topic also covers market structures such as perfect competition, monopoly and oligopoly, plus market failure, externalities and the distinction between microeconomic decisions and economy-wide outcomes.
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