Public Goods Have at Least One of Two Characteristics

question 14

Multiple Choice

Public goods have at least one of two characteristics.What are the two characteristics?

• A)collective consumption;nonexcludability
• B)individual consumption;nonexcludability
• C)collective consumption;excludability
• D)individual consumption;excludability

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Definitions:

Price Change

An adjustment in the price level of goods or services, which can be influenced by factors like supply and demand, inflation, and market competition.

Income Effect

Variations in personal or economic income and their influence on the demanded quantity of particular goods or services.

Normal Good

A normal good is a type of good for which demand increases when income increases and decreases when income decreases, assuming all other factors remain constant.

Inferior Good

A type of good for which demand decreases as the income of individuals increases, conversely, its demand increases when consumer income declines.