ECONOMICS
MARKET FAILURES
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Question
[CLICK ON ANY CHOICE TO KNOW THE RIGHT ANSWER]
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provided by the government for all consumers.
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provided free of charge because there is no opportunity cost.
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available for consumption by others when consumed by an additional person.
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heavily subsidised by the government.
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Detailed explanation-1: -Pure public goods: Goods that are perfectly non-rival in consumption and. are non-excludable. Non-rival in consumption: One individual’s consumption of a good does. not affect another’s opportunity to consume the good.
Detailed explanation-2: -Public goods are goods or services that can be consumed by several individuals simultaneously without diminishing the value of consumption to any one of the individuals. This key characteristic of public goods, that multiple individuals can consume the same good without diminishing its value, is termed non-rivalry.
Detailed explanation-3: -In economics, a public good refers to a commodity or service that is made available to all members of a society. Typically, these services are administered by governments and paid for collectively through taxation. Examples of public goods include law enforcement, national defense, and the rule of law.
Detailed explanation-4: -The answer is D. For a good or service to be a pure public good, it must be non-excludeable and non-rivaled in its consumption.