If the consumption of good by one person does not reduce the quantity available by others and nobody can be easily excluded from consumption, we are referring to a ?
Correct answer: C. public good
- A. Private good
- B. merit good
- C. public good
- D. abundant good
Explanation
A public good is both non-rival, meaning one person’s use does not reduce availability to others, and non-excludable, meaning people cannot easily be prevented from using it. These features distinguish it from a private good.
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About Public Finance
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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