Question

7. A good that is nonexcludable but rival in consumption is a(n):

a.) Public good

b.) Positive externality good

c.) Common resource good

d.) Artificially scarce good

Answer 1

excludability and rivalry are the basis for differentiation between public and private goods. But there is a gap when there is no excludability but rivalry like

for example in when the discount is given on some items then it is nonexcludable but rival at the same time because people will give their best with respect to each other so that they will get the benefit firstly

and it is seen in the case of COMMON RESOURCE GOOD

Aftificial scarce can be called as club goods which are excludable but non rivalorous

So the answer is C