Which type of good is rival and excludable?

Which type of good is rival and excludable?

• A. Public Good
• B. Private Good
• C. Club Good
• D. Common Resource

Answer: (B)

Rivalry in consumption and excludability define a private good. If a good is rival, one person’s use reduces the amount available for others; if it’s excludable, the owner can prevent others from using it unless they pay. Private goods fit both ideas: think of a slice of pizza or a personal item like clothing—when one person consumes it, there’s less left for others, and sellers can restrict access to those who pay. By contrast, public goods are non-rival and non-excludable (street lighting, national defense), club goods are excludable but non-rival up to a point (a private park or cinema), and common resources are rival but non-excludable (a fishery where anyone can fish but overuse reduces stock). So the type that is both rival and excludable is the private good.

Rivalry in consumption and excludability define a private good. If a good is rival, one person’s use reduces the amount available for others; if it’s excludable, the owner can prevent others from using it unless they pay. Private goods fit both ideas: think of a slice of pizza or a personal item like clothing—when one person consumes it, there’s less left for others, and sellers can restrict access to those who pay. By contrast, public goods are non-rival and non-excludable (street lighting, national defense), club goods are excludable but non-rival up to a point (a private park or cinema), and common resources are rival but non-excludable (a fishery where anyone can fish but overuse reduces stock). So the type that is both rival and excludable is the private good.