Public Goods: Misconceptions and Characteristics

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Question:

A public good is a good produced in the public sector.

False

True

Answer:

False.

A public good is defined by its characteristics of being non-excludable and non-rivalrous, meaning that individuals cannot be effectively excluded from using the good, and one person's use of the good does not reduce its availability to others. Public goods can be provided by the public sector, but they can also be produced by the private sector or through public-private partnerships. The key aspect is not the sector in which they are produced, but their characteristics as goods.