Chapter 76, Problem 1MCQ

To determine

The type of goods which are always nonrival in consumption.

Answer to Problem 1MCQ

From the available options, the correct option is a public good.

Explanation of Solution

A public good is always a non-rival good because it does not reduce the number of available goods and services for consumption by another if one person consumes or uses it. However, private goods are excludable and, in this case, producers can prevent certain people from using or consuming goods and services. The goods which are provided by the government would not always be non-rival in consumption and inferior goods do not influence people always to consume or buy. Common resources are scarce resources or goods which are also not always non-rival in consumption.

Therefore, the correct option is a (public good).

Economics Concept Introduction

Introduction: Excludable refers to the situation when according to people's willingness to pay, producers can prevent certain people from using or consuming goods and services. And, the rival in consumption means if one person consumes a good or service then it reduces the number of available goods and services for consumption by another.

A public good covers both non-excludable as well as non-rival. And, a private good is excludable and rival in consumption which may prevent people from consuming when one person consumes the same good.