Consider the following statements about rivalry in consumption:
(A) The benefits of public goods are available to all and are not restricted to one particular consumer.
(B) If a person eats a chocolate, it is not available to others; this consumption is rivalrous.
(C) One person’s use of a public park reduces the amount of the park available to others.
(D) Several people can enjoy the benefits of measures to reduce air pollution at the same time.
Choose the correct answer from the options given below:
Answer & explanation
Correct answer: option 4
The correct answer is Option (4) → (A), (B) and (D) only
A good is rivalrous when one person’s use leaves less for others. Public goods are non-rivalrous.
(A) The benefits of public goods are available to all and are not restricted to one particular consumer. — Correct. This is the first difference from private goods.
(B) If a person eats a chocolate, it is not available to others; this consumption is rivalrous. — Correct. A chocolate is a private good.
(C) One person’s use of a public park reduces the amount of the park available to others. — Incorrect. A park is a public good: one person’s use does not reduce what others can enjoy.
(D) Several people can enjoy the benefits of measures to reduce air pollution at the same time. — Correct. Cleaner air benefits all.
NCERT (2026-27): “Allocation Function of Government Budget … One, the benefits of public goods are available to all and are not only restricted to one particular consumer. For example, if a person eats a chocolate or wears a shirt, these will not be available to others. It is said that this person’s consumption stands in rival relationship to the consumption of others. However, if we consider a public park or measures to reduce air pollution, the benefits will be available to all. One person’s consumption of a good does not reduce the amount available for consumption for others and so several people can enjoy the benefits, that is, the consumption of many people is not ‘rivalrous’. …” |