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Which of the following is usually true about government-provided public goods?
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8. The Types of Goods
Public Goods: Demand Curve and Optimal Quantity
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Which of the following is NOT a characteristic of a public good?
A
Non-rivalry
B
Provided by private firms only
C
Consumption by one individual does not reduce availability to others
D
Non-excludability
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Step 1: Understand the definition of a public good. A public good is typically characterized by two main features: non-rivalry and non-excludability.
Step 2: Define non-rivalry: This means that one person's consumption of the good does not reduce the amount available for others to consume.
Step 3: Define non-excludability: This means that it is not possible to exclude individuals from consuming the good, even if they do not pay for it.
Step 4: Analyze the option 'Provided by private firms only.' Public goods are often provided by the government or public sector because private firms may not find it profitable to provide goods that are non-excludable and non-rivalrous.
Step 5: Conclude that 'Provided by private firms only' is NOT a characteristic of a public good, since public goods can be provided by governments or other entities, not exclusively by private firms.
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