Which statement is true about public goods?

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Multiple Choice

Which statement is true about public goods?

Explanation:
Public goods are defined by non-excludability and non-rivalry. That means once the good is available, one person’s use does not reduce another’s, and it’s hard to prevent people from benefiting even if they don’t pay. This creates a free-rider problem, so private markets tend to underprovide such goods. Therefore the true description is that public goods are non-rivalrous and non-excludable. Choices that rely on excludability or rivalry describe different types of goods, and private markets don’t always provide public goods efficiently due to the free-rider issue.

Public goods are defined by non-excludability and non-rivalry. That means once the good is available, one person’s use does not reduce another’s, and it’s hard to prevent people from benefiting even if they don’t pay. This creates a free-rider problem, so private markets tend to underprovide such goods. Therefore the true description is that public goods are non-rivalrous and non-excludable. Choices that rely on excludability or rivalry describe different types of goods, and private markets don’t always provide public goods efficiently due to the free-rider issue.

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