Practice mode / Markets, Efficiency And The Public Interest Which description fits private goods? A Option A: Rival in consumption and their benefits are non-excludable B Option B: Non-rival in consumption and their benefits excludable C Option C: Rival in consumption and their benefits are excludable D Option D: Non-rival in consumption and their benefits are nonexcludable Correct answer C. Rival in consumption and their benefits are excludable Explanation Private goods are rival, because one person's consumption leaves less for others, and excludable, because those who do not pay can be kept from using them. Show answer Report a problem Answer checked 11 October 2026 · How we write and check questions
Question 01 / Markets, Efficiency And The Public Interest Which of these is an example of a public good? A Option A: A public utility B Option B: A beautifully landscaped lawn C Option C: A book D Option D: Preservation of wetlands Correct answer D. Preservation of wetlands Show answer Open question
Question 02 / Markets, Efficiency And The Public Interest If one person’s enjoyment of a good does not reduce anyone else’s ability to consume it, how is the good described? A Option A: Non-rival in consumption B Option B: Non-excludable C Option C: Limitless in utility D Option D: Congestible in consumption Correct answer A. Non-rival in consumption Show answer Open question
Question 03 / Markets, Efficiency And The Public Interest If an external benefit affects a large number of people, why will private bargaining fail? A Option A: Non-rivalry B Option B: The free-rider problem C Option C: The Coase theorem D Option D: The fallacy of composition Correct answer B. The free-rider problem Show answer Open question
Question 04 / Markets, Efficiency And The Public Interest What is the idea called that, when externalities exist, private parties can sometimes reach the efficient solution without government intervention? A Option A: The Coase theorem B Option B: The drop-in-the-bucket problem C Option C: Arrow's impossibility theorem Correct answer A. The Coase theorem Show answer Open question
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