Question

Which of the following are characteristics of public goods? Choose one or more: A. Individuals have an incentive not to pay for a public good, even if they receive benefits from the good. B. The quality of public goods does not diminish when multiple people consume them. C. Public goods generally have a small value to society. D. There is usually no way to exclude people from consuming a public good, even if they refuse to pay for it.

Answer 1

Answer:

The correct answer is option A, option B, option D.

Explanation:

A public good can be defined as the good that a consumer can consume without reducing its availability to others. This non-rivalrous nature of public goods makes it difficult to exclude those who do not pay from consuming it.  

This makes public goods non-excludable in nature. The consumers can not be exempted even if they don't pay, so people have an incentive to consume without paying.