Topic Questions (MCQ – EASY): Classification of Goods and Services – 3auk

Which of the following is a characteristic that distinguishes public goods from private goods?

The price of the good is determined by the market.

Its consumption by one consumer can have an effect on other consumers.

The good is excludable, meaning that only those who pay for it can consume it.

Consumption of the good by one individual does not restrict consumption by others.

In what circumstance is it more likely for a good to be provided by the government rather than a private company?

Excludable and non-rivalrous.

Excludable and rivalrous.

Non-excludable and non-rivalrous.

Non-excludable and rivalrous.

Which of the following best describes a merit good?

a good that is awarded to consumers based on their merit or status

a good that the government believes will be underconsumed if provided by private companies at market prices

a good that provides benefits to all consumers regardless of individual consumption

The use of street lights is non-excludable, meaning that it is not possible to restrict their use to only those who pay for them. In contrast, the use of tennis courts can be restricted to only those who pay to use them, making it possible for the local council to charge a fee for their use.

Tennis courts are a luxury but street lights are a necessity.

Tennis courts are worth more than street lights.

There is a scarcity of land to build tennis courts but not street lights.

The use of street lights is non-excludable.

What can be inferred from the fact that taking a breath of fresh air under normal circumstances involves no opportunity cost?

Fresh air is a free good.

Fresh air is a merit good.

Fresh air is a public good.

Fresh air is an economic good.