Grade 11 · Social studies
Distinguish public goods in a simplified economic model
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In a model, an uncongested digital service requires a membership code and an added user does not reduce service to others. Which category fits?
- private good
- pure public good
- club good
- common-pool resource
See the answer & why
club good
Access is excludable, while use is nonrival under the no-congestion assumption.
A little hint: A rival good is reduced for others when one person uses it; exclusion means access can be restricted.
A rival good is reduced for others when one person uses it; exclusion means access can be restricted.
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