Suppose a dyke is constructed in a river city to prevent floods from affecting the city. In this way all occupants are made equally safe regardless of whether they pay taxes. Which characteristics of goods hold or do not hold.
A)Rivalry holds but exclusivity does not.
B)Both rivalry and exclusivity hold.
C)Exclusivity holds but rivalry does not.
D)Neither rivalry nor exclusivity hold.

Question

Quizplus · Accepted Answer

A dyke that prevents floods affects all occupants equally and does not exclude anyone from its benefits, making it non-excludable. Additionally, one person's safety from the dyke does not diminish another's, making it non-rivalrous.

Suppose a Dyke Is Constructed in a River City to Prevent