A private good is
A)a good that is rival and nonexcludable.
B)a good that is nonrival and nonexcludable.
C)a good that is rival and excludable.
D)a good that is nonrival and excludable.

Question

Quizplus · Accepted Answer

A private good is a good that is both rival and excludable. Rival implies that the consumption of the good by one person reduces the amount available for another person. Excludable implies that ownership rights can be established and enforced, and those who do not pay for the good can be excluded from consuming it. Examples of private goods include food, clothing, and housing. Option A is incorrect because nonexcludable goods like common-resource goods are available to everyone and cannot be restricted for use, and Option B is incorrect since nonrival goods, like public goods, can be consumed by everyone without affecting the quantity available. Option D is incorrect since non-excludable goods can be used by anyone, without restriction.

A Private Good Is