If one person’s consumption of a good reduces how much others can use, how is the good described?
Correct answer D. Rival
Topic / 19 questions
Public Goods MCQs
Public Goods MCQs cover goods that are non-excludable and non-rival, along with common resources, club goods and the free rider problem. They help economics students and candidates for CSS, PMS, UGC NET and BCS. Each question gives an instant answer, so you can practise classifying goods correctly and understand why markets under-provide them.
- Miscellaneous Economics 737
- Basic of Economics 430
- Markets, Efficiency And The Public Interest 167
- Agriculture & Irrigation System of Pakistan 126
- Market 87
- Macroeconomic Issues and Analysis 75
- Money, Interest Rates And Output 73
- Introduction To Economics 70
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- Profit Maximizing Under Perfect Competition And Monopoly 56
- Income Inequality 52
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- Characteristics and Institutions of Developing Countries 24
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- Consumer Theory vs. Real Consumers 20
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- Public Goods 20
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How is a private good classified?
Correct answer A. Both rival and excludable
How is a common resource classified?
Correct answer B. Rival but not excludable
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Twenty neighbours on a street each value street repairs at €3,000, and the repair costs €40,000. Which statement is true?
Correct answer A. It is efficient for the government to tax each resident €2,000 and repair the road
Which of these items counts as a public good?
Correct answer B. National defence
When governments use cost-benefit analysis to decide whether to provide a public good, why is it hard to measure the benefits?
Correct answer A. Respondents to questionnaires have little incentive to tell the truth
What does the parable of the tragedy of the commons illustrate?
Correct answer B. Why common resources are overconsumed
Which of these are possible ways to tackle air pollution?
Correct answer D. All of these answers
When markets fail to allocate resources efficiently, what is usually the underlying cause?
Correct answer A. That property rights have not been well established
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How is a congested toll road classified?
Correct answer D. A private good
Someone in the UK who regularly watches BBC programmes but does not pay the TV licence fee is described as what?
Correct answer B. A free rider
How is a public good classified?
Correct answer A. Neither rival nor excludable
How is a good produced by a natural monopoly classified?
Correct answer D. Not rival but excludable
Why is it hard for a private market to provide public goods?
Correct answer B. The free-rider problem
What is a free rider?
Correct answer C. Receives the benefits of a good but avoids paying for it
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A positive externality distorts market efficiency in a way similar to which type of good?
Correct answer D. Public good
A negative externality distorts market efficiency in a way similar to which type of good?
Correct answer B. A common resource
Which of these items would economists classify as a common resource?
Correct answer D. A national park
If people can be prevented from using a good, how is the good described?
Correct answer A. Excludable
About Public Goods MCQs
This Economics topic classifies goods by two properties: excludability, whether people can be prevented from using a good, and rivalry, whether one person's use reduces another's. Public goods are neither excludable nor rival, private goods are both, common resources are rival but not excludable, and club goods are excludable but not rival. Questions also cover the free rider problem, the difficulty of measuring benefits in cost-benefit analysis, and why negative externalities and public goods both lead to market failure. Classification questions, such as whether a congested toll road is a private good, are favourites with examiners.
Exams that include Public Goods MCQs
Pakistan
- CSS
- PMS
- FPSC
- PPSC
- Lecturer tests
- Banking job tests
India
- UPSC CSE
- UGC NET
- IBPS PO
- SBI PO
Bangladesh
- BCS
- Bangladesh Bank recruitment
- Bank job exams
Frequently asked questions
What is a free rider?
A free rider is a person who receives the benefit of a good without paying for it. Because public goods are non-excludable, people can enjoy them without contributing, so private firms find it hard to charge for them and the market tends to under-supply them.
Is a congested toll road a public good?
No. A congested toll road is a private good, because the toll makes it excludable and the congestion makes it rival, as each extra car slows others. An uncongested toll road would be a club good, and an uncongested free road a public good.
How many Public Goods MCQs are on MCQs360?
MCQs360 has 20 Public Goods MCQs, all with instant answers, free and with no sign-up. Draw a two-by-two table of excludable and rival goods before you begin, as it makes most classification questions quick to solve.
Last reviewed October 2026