A pure public good is characterized by:
Correct answer: B. Non-rivalry and non-exclusion
- A. Rivalry and easy exclusion
- B. Non-rivalry and non-exclusion
- C. Rivalry and non-exclusion
- D. Non-rivalry and easy exclusion
Explanation
One person's use of a pure public good does not reduce its availability to others, and people cannot easily be excluded from using it. National defence is a common example of these characteristics.
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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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