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0006. Which of the following are defining properties of a "public good" as used in this course?

A.

It has to benefit the general welfare

B.

The good is non-rivalrous - my consuming it does not prevent you from consuming it.

C.

No one can be excluded from using the good, even if one is not a contributor.

D.

Free riders will dominate and it will not be produced.

E.

B and C

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+ Solution and explanation

E is the correct answer because a pure public good is both "non-rivalrous" and "non-excludable." The former means one person's use does not take away from anothers; the latter means you cannot keep non-contributors from enjoying the benefit. If the good is rivalrous but non-excludable (like a public park), then we call it a "common pool resource." See public good.

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