Which of the following is usually true about government-provided public goods?

• A. They are always efficiently provided by private markets.
• B. They are non-excludable and non-rivalrous.
• C. Their consumption by one individual reduces the amount available for others.
• D. Individuals can be easily excluded from using them.

Answer: (B)

Verified step by step guidance

1. Understand the definition of public goods in microeconomics: Public goods are characterized by two main features—non-excludability and non-rivalry.
2. Non-excludability means that it is not feasible to prevent individuals from consuming the good once it is provided. In other words, no one can be easily excluded from using the good.
3. Non-rivalry means that one person's consumption of the good does not reduce the amount available for others to consume. This contrasts with private goods, where consumption by one individual reduces availability for others.
4. Recognize why private markets often fail to provide public goods efficiently: Because individuals cannot be excluded, private firms may not find it profitable to produce these goods, leading to under-provision or no provision at all.
5. Therefore, the statement 'They are non-excludable and non-rivalrous' correctly describes public goods, while the other options contradict these defining characteristics.