Question

“Consumption of a good by a person does not reduce the amount available for consumption by others. Consumers consuming such goods are known as free-riders.”

Identify the type of goods indicated in the above text.

• A. Public goods
• B. Private goods
• C. Joint venture goods
• D. Self-consumption goods

Hint:

Goods that one person can use without reducing what others get, and that invite free-riders, are public goods.

Answer 1

The Correct Option is A

Step 1: Read the clues:
Clue 1: consumption by one person does not reduce the amount left for others. This property is called non-rivalry.
Clue 2: consumers cannot be stopped from using it, so many use it without paying. They are called free-riders.

Step 2: Match with the types of goods:
(A) Public goods have non-rivalry and non-excludability. Street lights and national defence are examples. This matches both clues.
(B) Private goods are rival and excludable. One person using them leaves less for others, so (B) fails.
(C) Joint venture goods is not an economic category of goods in NCERT. (C) is wrong.
(D) Self-consumption goods are those kept for own use, with no free-rider idea. (D) is wrong.

Final Answer:
The goods are public goods. Option (A).