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Which of these is related to public goods?
Question

Which of these is related to public goods?

A.

The principle of excludability is applicable to its consumption.

B.

There is a clear link between the producer and consumer which occurs through the payment process.

C.

Its consumption is rivalrous in nature.

D.

There is a possibility of free ridership in its consumption.

Correct option is D

Public goods are associated with the concept of free ridership, which means people can benefit from the good without contributing to its cost because public goods are non-excludable and non-rivalrous.
Excludability applies to private goods where consumers can be prevented from consuming them if they do not pay.
 The clear link between producer and consumer through payment is a characteristic of private goods.
 Rivalrous consumption means that one person's consumption of a good reduces the quantity available for others, which is not a feature of public goods.

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