Multiple Choice
Why might firms in the defense industry invest large amounts of money in lobbyists with respect to public goods like national defense?
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8. The Types of Goods
Public Goods: Demand Curve and Optimal Quantity
Multiple Choice
Which of the following demonstrates nonrivalry in consumption?
A
A sandwich purchased and eaten by one person
B
A seat at a sold-out concert
C
A lighthouse providing guidance to all ships in the area
D
A parking space used by a single car
Verified step by step guidance1
Understand the concept of nonrivalry in consumption: A good is nonrivalrous if one person's consumption of the good does not reduce the amount available for others to consume.
Analyze each option to see if one person's use diminishes availability for others:
For the sandwich, once eaten by one person, it cannot be consumed by another, so it is rivalrous.
For a seat at a sold-out concert, one person's occupation of the seat prevents others from using it, so it is rivalrous.
For a lighthouse providing guidance, one ship's use of the light does not reduce the light available to other ships, so it is nonrivalrous.
For a parking space used by a single car, once occupied, it cannot be used by another car simultaneously, so it is rivalrous.
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