Question:
In the context of public goods, the characteristic of ‘non-rivalry’ means that:
(1) it is impossible to prevent non-payers from consuming the good.
(2) consumption by one person does not reduce the availability of the good for others.
(3) the good is provided by the private sector at a market price.
(4) the good is rival in consumption but excludable.
(5) the good is owned by the government.
Correct Answer:
(2)
Answer Explanation:
Non-rivalry is a key feature of public goods (like a lighthouse or street lamp). If one person uses it, it doesn’t “use it up” for anyone else. Option (1) refers to non-excludability.
Topic: Public Finance Year: 2024
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