Question : Which of the following best describes a club good?
Option 1: A good that is non- rivalrous and non-excludable
Option 2: A good that is non-rivalrous and excludable
Option 3: A good that is rivalrous and non-excludable
Option 4: A good that is rivalrous and excludable
Correct Answer: A good that is non-rivalrous and excludable
Solution : The correct answer is (b) A good that is non-rivalrous and excludable.
A club good is a type of good that is non-rivalrous, meaning that one person's consumption of the good does not reduce its availability or utility for others. However, it is excludable, which means that access to the good can be restricted or limited to certain individuals.
Examples of club goods include private parks with membership fees, subscription-based digital content platforms, and toll roads with limited access.
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