Question

Which of the following statements are true in case of public goods?
(a) Public goods are non divisible.
(b) Public goods are non excludable.
(c) Whatever government purchases is called Public good.
(d) Whatever the public consumes is called public good.

• A. (C) and (D) only
• B. (A) and (B) only
• C. (A), (B) and (D) only
• D. (A), (B) and (C) only

Hint:

What defines a public good?

Answer 1

The Correct Option is B

*Public goods* are characterized by two main properties: *non-excludability* (it is not possible to prevent someone from using the good) and *non-rivalry* (one person's use of the good does not reduce its availability to others).

Hence, the correct answer is (b).