Which of these is related to public goods?

Question

Question

This question was previously asked in

SSC CHSL Exam 2023 Tier-I Official Paper (Held On: 02 Aug, 2023 Shift 2)

The principle of excludability is applicable to its consumption.
There is a clear link between the producer and consumer which occurs through the payment process.
Its consumption is rivalrous in nature.
There is a possibility of free ridership in its consumption.

Answer 1

The correct answer is There is a possibility of free ridership in its consumption.Key Points

Public goods are goods or services that are non-excludable and non-rivalrous in nature.
They are available to everyone and their consumption by one person does not diminish their availability to others.
The possibility of free ridership in the consumption of public goods is a key characteristic, as individuals can benefit from the good without contributing to its provision.
If users don't pay for such goods, they can't be prevented from using or accessing them.
Multiple people can use the good at the same time.

Additional Information

The principle of excludability:
- The ability of a good, service, or resource to be restricted to only those who can afford it is known as excludability.
- Excludability refers to the ability of a producer, supplier, or other managing body (such as the government) to stop "free" consumption of a good.
Clear link between the producer and consumer which occurs through the payment process:
- It is more applicable to private goods.
- It is applicable where payment is necessary to access the good or service.
Its consumption is rivalrous in nature:
- It suggests rivalrous consumption.
- It is also not applicable to public goods as their consumption does not reduce availability to others.