Question

Read the following statements: Assertion (A) and Reason (R). Choose the correct option from those given below:
Assertion (A): Public goods are those goods that are collectively consumed by the public.
Reason (R): Public goods are excludable and rivalrous in nature.

• A. Both Assertion (A) and Reason (R) are true and Reason (R) is the correct explanation of Assertion (A).
• B. Both Assertion (A) and Reason (R) are true, but Reason (R) is not the correct explanation of Assertion (A).
• C. Assertion (A) is true, but Reason (R) is false.
• D. Assertion (A) is false, but Reason (R) is true.

Hint:

Public goods = Non-excludable + Non-rivalrous (like street lighting, national defense).

Answer 1

The Correct Option is C

Public goods are indeed those that are collectively consumed by the public. However, they are non-excludable and non-rivalrous in nature, which means one person’s consumption does not reduce availability to others and people cannot be excluded from their use. Therefore, Reason (R) is false.