Which of the following is a characteristic of public goods?

• A. Rivalrous consumption.
• B. Excludable by price.
• C. Nonrival, nonexcludable in consumption.
• D. Provided only by private markets.

Answer: (C)

Public goods are defined by two features: nonrivalry and nonexcludability. This means many people can use the good at the same time without reducing anyone else’s enjoyment, and it’s difficult to prevent people from using it even if they don’t pay. That’s why the description nonrival, nonexcludable in consumption best captures what a public good is.

Rivalrous consumption describes goods where one person’s use diminishes another’s, which isn’t true for public goods. Excludable by price refers to goods where access can be limited to paying customers, which also isn’t typical of public goods. Being provided only by private markets ignores the common role governments often play in supplying or funding public goods.