Multiple Choice
Which of the following examples exemplifies a rivalrous private good?
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8. The Types of Goods
Four Types of Goods and Two Characteristics
Multiple Choice
Coffee pots and televisions would be classified as what type of goods according to the four types of goods and their characteristics?
A
Common resources
B
Public goods
C
Club goods
D
Private goods
Verified step by step guidance1
Recall the four types of goods classified by their characteristics of excludability and rivalry: Private goods, Public goods, Common resources, and Club goods.
Understand that Private goods are both excludable (people can be prevented from using them) and rivalrous (one person's consumption reduces availability for others).
Recognize that Public goods are non-excludable and non-rivalrous, meaning no one can be excluded and one person's use does not reduce availability for others.
Identify that Common resources are rivalrous but non-excludable, so they can be depleted but are hard to restrict access to.
Note that Club goods are excludable but non-rivalrous, meaning access can be controlled but one person's use does not reduce availability for others. Since coffee pots and televisions are both excludable and rivalrous, they fit the definition of Private goods.
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