Public goods, as distinct from private goods, are:
Answer & explanation
Correct answer: option 2
The correct answer is Option (2) → collectively consumed
Public goods such as a park or national defence are collectively consumed. Many people enjoy them at the same time, and no one can be kept out.
Because no one can be excluded, fees are hard to collect, so private firms in general do not provide them. One person’s use also does not reduce what is left for others, so consumption is not rival.
NCERT (2026-27): “Summary 1. Public goods, as distinct from private goods, are collectively consumed. Two important features of public goods are – they are non-rivalrous in that one person can increase her satisfaction from the good without reducing that obtained by others and they are non-excludable, and there is no feasible way of excluding anyone from enjoying the benefits of the good. These make it difficult to collect fees for their use and private enterprise will in general not provide these goods. Hence, they must be provided by the government.” |