Question

A product is considered to be nonexcludable ifA. it is jointly owned by all members of a community.B. your consumption of the product reduces the quantity available for others to consume.C. you cannot keep those who did not pay for the item from enjoying its benefits.D. you can keep those who did not pay for the item from enjoying its benefits.

Answer 1

Answer:

OPTION C              

Explanation:

Non-exclusive goods are essential services which can not preclude the use of such goods by a single person or group of persons. Consequently it is almost difficult to restrict access to the sale of un-excludable products. For instance, a public highway requires almost anyone to use it no matter of the type of motorized vehicle we have, or even if they are just wandering around.

Products which are not excluded and products which are excluded are opposites. The former means that each person can access and consume a certain public good while the latter refers to goods which prevent some people from using it. Exclusive items are private goods while non-exclusive goods are public goods.