Question:
In the context of public goods, ‘non-rivalrous consumption’ means
(1) the good can be consumed by one individual without reducing the amount available for others.
(2) the good cannot be provided to individuals who do not pay for it.
(3) the people who do not pay cannot be excluded from the consumption.
(4) the consumption of a public good by one individual reduces the availability of that good for others.
(5) public goods can be consumed only by those who have paid for them.
Correct Answer:
(1)
Answer Explanation:
Non-rivalry is a defining characteristic of a pure public good (like a lighthouse or national defense). It means that one person’s use or consumption of the good does not diminish its quality, quantity, or availability for anyone else. Option 3 describes “non-excludability.”
Topic: Public Goods Year: 2024
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