ECONOMICS (CBSE/UGC NET)

Detailed explanation-1: -A public good has two key characteristics: it is nonexcludable and nonrivalrous. These characteristics make it difficult for market producers to sell the good to individual consumers. Nonexcludable means that it is costly or impossible for one user to exclude others from using a good.

Detailed explanation-2: -Public goods are non-excludable and non-rival. Examples of public goods are public parks and the air we breathe. Access to parks and air is not restricted and they can be consumed or possessed by multiple users. Private goods are excludable and rival.

Detailed explanation-3: -Non-rivalrous goods are public goods that are consumed by people but whose supply is not affected by people’s consumption. In other words, when an individual or a group of individuals use a particular good, the supply left for other people to use remains unchanged.

Detailed explanation-4: -A public good is both nonexcludable and nonrival in consumption.

Detailed explanation-5: -Club Goods: Goods that are excludable but non-rival, or non-subtractable. This means that while certain people can be excluded from the consumption of a good, one person’s consumption of it does not diminish another person’s.