Question

Public goods tend to be _____ because the provider of the good cannot prevent someone from enjoying the good without paying for it, which means the good is _____. question 13 options:

a. underproduced; nonexcludable
b. overproduced; nonrival
c. overproduced; nonexcludable
d. underproduced; nonrival

Answer 1

The correct option is a. underproduced; nonexcludable

A good is considered non excludable if it is not possible to prevent nonpaying consumers from using it. Such goods tend to be under produced as there is no incentive to motivate firms to produce them since they will not charge for them