Non-Rivalrous Property of Public Goods

Steps:

• Recall that public goods are non-rivalrous, meaning one person's use doesn't diminish availability for others.
• Examine choices: A describes non-excludability, not rivalry.
• B matches the definition by focusing on unchanged availability after consumption.
• Eliminate C and D as they relate to market failures or supply, not rivalry directly.

Why B is correct:

• Non-rival nature is defined in economics as consumption by one individual not reducing the amount available to others, preventing scarcity from use.

Why the others are wrong:

• A: Describes non-excludability, the inability to prevent non-payers from benefiting.
• C: Refers to underconsumption due to positive externalities, not rivalry.
• D: Implies infinite supply but ignores that rivalry concerns consumption impact, not total supply.

Final answer: B