Question : Which of the following is an incorrect statement concerning public goods?
Option 1: Usually, public goods are provided by the government.
Option 2: Consumption of public goods by people is rivalrous in nature.
Option 3: It is not easy to collect fees for public goods from every individual.
Option 4: Public goods are non-excludable in nature.
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Correct Answer: Consumption of public goods by people is rivalrous in nature.
Solution : The correct option is Consumption of public goods by people is rivalrous.
Because public goods are non-rivalrous, the consumption of one individual does not affect the supply of the commodity for others. Private commodities, on the other hand, are rivalrous since the use of one individual limits the supply of that commodity for others.
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Question : Which of these is related to public goods?
Option 1: The principle of excludability applies to its consumption.
Option 2: There is a clear link between the producer and consumer, which occurs through the payment process.
Option 3: Its consumption is rivalrous.
Option 4: There is a possibility of free ridership in its consumption.
Question : Collective consumption means
Option 1: household consumption
Option 2: individual consumption
Option 3: self-consumption
Option 4: consumption by the citizens of the country
Question : Goods which are meant either for consumption or for investment are called
Option 1: final goods
Option 2: giffen goods
Option 3: inferior goods
Option 4: intermediate goods
Question : Final goods are divided into:
Option 1: raw materials and semi-finished goods
Option 2: single goods and composite goods
Option 3: consumption goods and capital goods
Option 4: war goods and civilian goods
Question : Expenditure on advertisement and public relations by an enterprise is a part of its:
Option 1: consumption of fixed capital
Option 2: final consumption expenditure
Option 3: intermediate consumption
Option 4: fixed capital
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