Multiple Choice
Which two characteristics are used to differentiate private goods from public goods?
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8. The Types of Goods
Four Types of Goods and Two Characteristics
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Which type of economic goods can be categorized as rivalrous and non-excludable?
A
Private goods
B
Club goods
C
Public goods
D
Common resources
Verified step by step guidance1
Understand the definitions of the key terms: Rivalrous means that one person's consumption of the good reduces the amount available for others, while non-excludable means it is difficult or impossible to prevent others from using the good.
Identify the characteristics of each type of good: Private goods are both rivalrous and excludable; club goods are non-rivalrous but excludable; public goods are non-rivalrous and non-excludable.
Recognize that common resources are rivalrous because one person's use diminishes availability for others, but they are non-excludable because it is hard to prevent people from accessing them.
Match the characteristics of rivalrous and non-excludable goods to the category of common resources based on the definitions and properties discussed.
Conclude that the type of economic goods that are rivalrous and non-excludable are common resources.
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