Question

Which of the following statements is (are) correct?

(x)   A good is nonexcludable if it is prohibitively costly to prevent people from using it.

(y)   When a good is rivalrous in consumption, it means that one person’s use of the good will not diminish another person’s ability to use it, and, as a consequence, more than one person can use the good at the same time.

(z) A shirt would be considered a private good because it is excludable and rivalrous in consumption

A. (x), (y) and (z)

B. (x) and (y) only

C. (x) and (z) only

D. (y) and (z) only

E. (y) only

Which of the following goods would be considered a club good?

Select one:

A. an electric utility because it is rivalrous and nonexcludable

B. cable television, because it is nonrivalrous and excludable

C. bottled natural mineral water because it is nonexcludable and rivalrous

D. a congested public park because it is nonrivalrous and excludable

Which of the following statements is (are) correct?

Select one:

A. Both public goods and common resources are nonexcludable.

B. Both public goods and club goods are nonrivalrous in consumption.

C. One of the reasons why public education is not a public good is because public education has the characteristic of excludability.

D. All of the above.

E. A and B, only

Answer 1

a) "C"

X and Z are correct option because when a good is rivalrous that means if one person is consuming it then the value of that good for the other will diminishes.

b) "B"

Cable television will be considered as a non rivalrous good in the market because its non rivalrous and excludable.

c) "E"

A and B are correct.