O Levels Economics (2281)•2281/12/O/N/21

Explanation
Public Goods: Non-Excludable and Non-Rival
Steps:
- Define excludable: Can prevent non-payers from using the good.
- Define rival: One person's use reduces availability for others.
- Identify public good traits: Free access for all, no depletion from shared use.
- Match to option C: Non-excludable (free access) and non-rival (unlimited sharing).
Why C is correct:
- Economics defines public goods as non-excludable (impossible or costly to exclude users) and non-rival in consumption (one user's benefit doesn't diminish others'), like national defense.
Why the others are wrong:
- A: Describes club goods (excludable but non-rival, e.g., cable TV).
- B: Describes common resources (non-excludable but rival, e.g., public fisheries).
- D: Identical to B, describes common resources.
Final answer: C
Topic: Market failure
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