Understanding Quasi-Public Goods
Which of the following is an example of a quasi-public good?
a) Private car
b) Public park
c) Club membership
d) Grocery store
Final answer:
A public park is an example of a quasi-public good, exhibiting characteristics of both private and public goods by being non-excludable but potentially rivalrous. The answer is option B.
Explanation:
An example of a quasi-public good from the choices provided is a public park. Quasi-public goods are those that exhibit characteristics of both private and public goods; they are non-excludable but can be congestible, which means they can become rivalrous when their usage reaches saturation.
In contrast, private goods, like a private car and club membership, are both excludable and rivalrous; whereas grocery stores are purely commercial entities. Among other options, streaming music from satellite transmission programs and cell phone service are both excludable and rivalrous.
Which characteristics define a quasi-public good? Quasi-public goods are non-excludable but can become rivalrous when their usage reaches saturation. They exhibit characteristics of both private and public goods.