Which of the following statements is true?
A)If a good is nonrivalrous in consumption then it is nonexcludable, too.
B)A good can be rivalrous in consumption and nonexcludable, too.
C)An apple is nonrivalrous in consumption.
D)Many economists maintain that the market fails to produce nonexcludable private goods.

Question

Quizplus · Accepted Answer

A good can be both rivalrous in consumption (meaning one person's use of the good diminishes the amount available for others) and nonexcludable (meaning it is difficult or impossible to prevent people from accessing the good). A common example is a public park - multiple people can use the park at the same time, but it's difficult to prevent people from accessing the park even if they don't contribute to its upkeep. Option A is false because while nonrivalrous goods are always nonexcludable, the reverse is not true. Option C is false because an apple is rivalrous in consumption (meaning if someone eats it, there is less apple available for others). Option D is a matter of debate among economists and does not relate directly to the concept of rivalrousness and excludability.

Which of the Following Statements Is True