Common resources and public goods have in common that they are not excludable and they are not rival in consumption. a. TRUE b. FALSE

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Business

Claudia Valdez

2 June, 13:32

Common resources and public goods have in common that they are not excludable and they are not rival in consumption. a. TRUE b. FALSE

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Answers (1)

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Nayeli Burgess · Answer 1

The correct answer is letter "B": False.

Explanation:

Common resources are those massively used by individuals because there are no charges for these goods. Air, water, and fish are examples of common resources. Public goods are those normally funded and provided by the government. Public parks, schools, and national defense are examples of public goods.

Both common resources and public goods are non-excludable because nobody can prevent individuals from consuming them. However, common resources are rival in consumption because they cannot be consumed by one person at the same time while public goods are non-rival in consumption since more than one individual can consume them simultaneously.