Which of the following is NOT a Public good ?
Correct Answer: C. Cars
Explanation: Public Good Definition -Goods that are non-excludable and non-rivalrous Characteristics - 1. Non-Excludability 2. Non-Rivalry Price - Decided by Government and Financed by budget Examples - National Defence,Public Parks Private Goods Definition - Goods that are excludable and rivalrous Characteristics - 1. Excludability 2. Rivalry Price - Decided by market Examples - Parking space Merit Goods Definition - Goods beneficial for individuals and society, Often consumed without intervention. Characteristics - 1. Positive Externalities 2. Under-consumption Price - Mix of govt intervention and market forces Examples - Education. Housing, Healthcare DeMerit Goods A demerit good is a good or service whose consumption is considered harmful to the consumers themselves They include products tobacco, alcohol, and gambling products. High tax rate Eg. -28% GST rate on betting and casino Additional cess and surcharges Eg. - GST compensation cess on tobacco PYQ’s Solution English 18