Which of the following is a private good?
Show answer & explanation
Correct answer: B
Explanation
The correct answer is option 2 i.e. A good that is consumed by a single person or household.
- A private good, in economics, is defined as an item that yields positive benefits to people that is excludable, i.e its owners can exercise private property rights.
- It is basically a good that is consumed by a single person or household.