PRC-3 · Chapter 1 · Question 24 of 61
The local government installs a network of streetlights in a suburban neighborhood. Once installed, no resident can be excluded from benefiting from the light, and one person using the light does not diminish another's ability to use it. What type of good is this?
Test yourself: pick an answer
Reveal answer & explanation
Correct answer: B) Public good
Explanation
Public goods are non-excludable and non-rivalrous, meaning individuals cannot be stopped from using them, and their use does not deplete the availability for others.
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