CIMA BA1 · Chapter 8 · Question 1 of 9
A pure public good is characterised by being:
Test yourself: pick an answer
Reveal answer & explanation
Correct answer: D) Non-rival and non-excludable in consumption
Explanation
A public good is non-rival (one person's consumption does not reduce availability to others) and non-excludable (people cannot be prevented from benefiting). This creates a free-rider problem, so the market tends not to provide it.
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