2 Views

Question : Which of these is related to public goods?

Option 1: The principle of excludability applies to its consumption.

Option 2: There is a clear link between the producer and consumer, which occurs through the payment process.

Option 3: Its consumption is rivalrous.

Option 4: There is a possibility of free ridership in its consumption.


Team Careers360 12th Jan, 2024
Answer (1)
Team Careers360 15th Jan, 2024

Correct Answer: There is a possibility of free ridership in its consumption.


Solution : The correct option is There is a possibility of free ridership in its consumption .

The presence of free ridership in consumption is a characteristic of public goods. Free riders are individuals, or entities that benefit from a public good without paying for it. Since public goods are non-excludable, it is challenging to prevent people from enjoying the benefits even if they don't contribute to the cost of providing the goods.

How to crack SSC CHSL

Candidates can download this e-book to give a boost to thier preparation.

Download Now

Know More About

Related Questions

TOEFL ® Registrations 2024
Apply
Accepted by more than 11,000 universities in over 150 countries worldwide
Manipal Online M.Com Admissions
Apply
Apply for Online M.Com from Manipal University
View All Application Forms

Download the Careers360 App on your Android phone

Regular exam updates, QnA, Predictors, College Applications & E-books now on your Mobile

150M+ Students
30,000+ Colleges
500+ Exams
1500+ E-books