Private Goods Are Both

question 152

Multiple Choice

Private goods are both:

• A) rival and nonexcludable.
• B) nonrival and excludable.
• C) nonrival and nonexcludable.
• D) rival and excludable.

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Definitions:

MSC (Marginal Social Cost)

The total cost to society of producing an additional unit of a good or service, including both private costs and any externalities.

Positive Externality

A benefit received by individuals or society at large from an economic transaction in which they were not directly involved.

Vaccinating

The act of administering a vaccine to help the immune system develop protection from a disease.

Marginal Benefit

The enhancement in satisfaction or utility achieved by consuming an additional unit of a product or service.