Question

If a good is nonexcludable,

1) people can be prevented from using the good

2) people cannot be prevented from using the good

3) efficient markets will exist

4) government intervention cannot solve the market failure

Answer 1

Option '2' is the right answer. A nonexcludable good cannot be prevented from use of public. people cannot be prevented from using of nonexcludable goods.

The non excludable goods are the public goods which cannot be denied the access of anyone from using that good. Denying the use of nonexcludable goods are almost impossible.

Nonexcludable goods are just opposite of excludable goods. The nom excludable goods means, the use of such goods cannot be prevented. For example public roads, bridges and etc. cannot be prevented from the use of anyone. While excludable goods means the use of some goods can be restricted. For instance the magic show, where everyone cannot enter if they intend. To enter they need to take ticket and it cannot include everyone as there is a limit to the seating capacity.

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