Question

1. Is a U.S. treasury bond that is offered by the United states a: A)Rival or...

1. Is a U.S. treasury bond that is offered by the United states a:

A)Rival or non-rival good?

B) excludable or non-excludable?

2. With that in mind is it a public or private good?

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Answer #1

Answer - The US treasury bonds are non rivalrous goods . The goods which do not prevent the other person from consuming the same good are non rivalrous goods. The bonds are purchased by many persons. Hence they will be non rivalrous.

They are excludable goods. This is because the purchase of bonds can be excluded by not paying the cost for it. Hence they will be excludable.

Because the bonds are non rival in nature , they will be called the public goods. But not the pure public goods because the consumption is excludable. They would have been pure public goods if they were non rival and non excludable.

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