Subsidized housing is an example of which type of good?

• A. A private good
• B. A club good
• C. A public good
• D. A common resource

Answer: (A)

Verified step by step guidance

1. Step 1: Understand the definitions of the types of goods involved: Private goods are excludable and rivalrous, meaning people can be prevented from using them and one person's use reduces availability for others.
2. Step 2: Club goods are excludable but non-rivalrous, so people can be excluded but one person's use does not reduce availability for others.
3. Step 3: Public goods are non-excludable and non-rivalrous, meaning no one can be prevented from using them and one person's use does not reduce availability for others.
4. Step 4: Common resources are non-excludable but rivalrous, so people cannot be prevented from using them but one person's use reduces availability for others.
5. Step 5: Analyze subsidized housing in this context: it is excludable because only eligible individuals can access it, and rivalrous because housing units are limited and one person's use reduces availability for others. Therefore, subsidized housing fits the characteristics of a private good.