Which of the following is an INCORRECT statement concerning public goods?
Show answer & explanation
Correct answer: B
Explanation
The correct answer is option 2 i.e. Consumption of public goods by people is rivalrous in nature.
The incorrect statement concerning public goods is: "Consumption of public goods by people is rivalrous in nature."
Public goods are characterized by being non-rivalrous, meaning one person's consumption does not reduce the availability of the good for others. For instance, national defense or street lighting can be enjoyed by many individuals simultaneously without diminishing the benefit to others. Public goods are also non-excludable, making it challenging to charge individuals directly for their use, which is why they are typically provided by the government.