The difference between a private good and a public good is that
A) private goods are government-sponsored goods while public goods are government-inhibited goods.
B) externalities are always created in the production process but not in the production of public goods.
C) private goods make us happy while public goods do not.
D) the exclusion principle applies to a private good but not to a public good.

Question

Quizplus · Accepted Answer

The exclusion principle states that individuals can be excluded from consuming a good if they do not pay for it. This applies to private goods, where exclusion is possible, but not to public goods, where exclusion is difficult or impossible. The other options are not accurate explanations of the difference between private and public goods.

The Difference Between a Private Good and a Public Good