Practicing Success

Target Exam

CUET

Subject

Economics

Chapter

Macro Economics: Government Budget and Economy

Question:

Which of the following statement/statements are true?
Statement 1: Public goods are collectively consumed.
Statement 2: There is a feasible way of excluding anyone from enjoying the benefits of public goods.

Options:

Both the statements are true

Both the statements are false

Statement 1 is true and Statement 2 is false

Statement 2 is true and Statement 1 is false

Correct Answer:

Statement 1 is true and Statement 2 is false

Explanation:

Public goods are non-excludable. So they are collectively consumed. No one person can be excluded from their consumption.