If one person's enjoyment of the benefits of a good does not interfere with another's consumption of it, the good is said to be ?
Correct answer: B. non-rival in consumption
- A. limitless in utility
- B. non-rival in consumption
- C. congestible in consumption
- D. non-excludable
Explanation
A good is non-rival in consumption when one person's use does not reduce the amount available for others, as with national defence or a broadcast signal. Non-excludability is a separate property concerning whether non-payers can be prevented from benefiting.
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Government revenue and expenditure are analysed through taxation, public borrowing, budgets, subsidies, transfers and public debt. The topic explains how fiscal policy affects resource allocation, income distribution, economic stability and growth, while distinguishing direct from indirect taxes, progressive from regressive taxation, and public goods from goods supplied by private markets.
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