What characterizes a private good ?
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Answer: C. both rival excludable
Explanation
Private goods require both excludability and rivalry in consumption characteristics. Owners can prevent non-payers from accessing the item through excludability. One person consumption reduces the amount available for others due to rivalry. Microeconomics classifies goods using excludability and rivalry matrices. Market economies allocate private goods efficiently through price mechanisms. Consumer property rights are legally protected for all standard private goods.
Purchasing groceries at a supermarket represents a standard private good transaction. Clothing items purchased at retail stores are exclusively owned and consumed. Private markets thrive on producing and selling excludable and rivalrous products. Goods that are rival but not excludable describe common pool resource items. Items that are not rival but excludable represent club goods like subscription services. Goods that are neither rival nor excludable are classified as public goods.
Related questions
Q1. What statement regarding the incidence and burden of a tax is accurate?
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Answer: C. The distribution of the burden of a tax is determined by the relative elasticities of determined by legislation.
The distribution of a tax burden depends on the relative price elasticities of supply and demand rather than statutory collection points.
Q2. Workers in Western Europe experience high living standards primarily because ?
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Answer: C. none of these answers.
High living standards in Western Europe stem primarily from high productivity rather than just minimum wages. Economic output per worker is the fundamental driver of sustained real wage growth and prosperity. Productive...
Q3. Following the introduction of a tariff, the volume of imports drops to ?
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Answer: B. 20,000 units
Following the implementation of a tariff, domestic prices rise and import volume decreases to 20,000 units. Tariffs restrict international trade by imposing taxes, which naturally reduces foreign product demand. Economic...
Q4. X inefficiency arises under what conditions ?
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Answer: C. Costs are higher than they could be due to a lack of competitive pressure
X-inefficiency occurs when firms fail to operate on minimum cost curves due to weak competition. Without competitive pressure, management lacks the incentive to eliminate unnecessary organizational expenses. This economi...
Q5. Which forest type predominantly develops in lowland regions located between 50° N and 70° N ?
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Answer: C. Temperate coniferous forests
Temperate coniferous forests grow predominantly in lowland regions situated between latitudes fifty and seventy degrees north. This specific geographic zone experiences long cold winters and short summers favorable to ev...
Q6. What defines a “Lame Duck” within the stock market ?
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Answer: C. A member of the stock exchange who cannot meet his obligations
A lame duck in financial markets refers directly to a member unable to meet financial obligations. When an investor fails to settle outstanding trades, they are categorized under this specific market term. This financial...