One major difference between public goods and private goods is that:

• A. public goods can be consumed only once, while private goods can be consumed multiple times
• B. public goods are non-excludable and non-rivalrous, while private goods are excludable and rivalrous
• C. public goods are always produced by the government, while private goods are always produced by firms
• D. public goods have downward-sloping demand curves, while private goods have upward-sloping demand curves

Answer: (B)

Verified step by step guidance

1. Step 1: Understand the key characteristics of public goods and private goods. Public goods are defined by two main properties: non-excludability and non-rivalry.
2. Step 2: Non-excludability means that it is not possible to prevent individuals from consuming the good once it is provided. Non-rivalry means that one person's consumption of the good does not reduce the amount available for others.
3. Step 3: Private goods, on the other hand, are excludable and rivalrous. Excludability means that producers can prevent non-payers from consuming the good, and rivalry means that one person's consumption reduces the quantity available for others.
4. Step 4: Evaluate each option in the problem statement against these definitions. For example, the statement that public goods can be consumed only once is incorrect because public goods can be consumed simultaneously by many people without depletion.
5. Step 5: Conclude that the correct distinguishing feature is that public goods are non-excludable and non-rivalrous, while private goods are excludable and rivalrous.