Which of the following is a characteristic of public goods?

Question

Question

This question was previously asked in

RRB Group D 2 Sept 2022 Shift 2 Official Paper

Answer 1

The correct answer is "Non-rivalry".

Key Points

Public goods are goods that can be used by anyone.
The availability of these goods does not reduce if others also use them.
One cannot stop another from using these.
Examples: Street lamps, clean air, flood control systems, etc.
There are two characteristics of public goods:
- Nonrivalrous
- Nonexcludable

Additional Information

Nonrivalrous - The use of public good by one person does not reduce the availability of that good to another person.
Nonexcludable - The government has provided public good to everyone and no one can prevent another person from using that.
There are other types of goods also like private goods, common goods, club goods, etc.
Any product that is purchased by one and prevents another from its use is called a private good.
The characteristics of private goods:
- Excludability - The consumer cannot use the goods if they do not pay the seller.
- Rivalry - When a good is used or purchased by an individual that leaves less of the good available for others.
- Reject - If a consumer does not like the product they can reject it.