Which statement correctly describes excludable and non-excludable goods?

Which statement correctly describes excludable and non-excludable goods?

• A. Excludable goods can be withheld from non-payers; non-excludable goods cannot.
• B. Non-excludable goods are always free to everyone.
• C. Excludable goods cannot be bought.
• D. Non-excludable goods are always private.

Answer: (A)

Excludability is about whether access to a good can be restricted to those who pay. Excludable goods can be kept from non-payers through prices, licenses, or other controls, so people who don’t pay can be prevented from using them. Non-excludable goods are those where it's difficult or impractical to stop someone from using them, so access can’t be easily denied to non-payers. This makes the statement about excludable goods and non-excludable goods the best description: excludable goods can be withheld from non-payers, while non-excludable goods cannot be effectively withheld from use. Why the other statements don’t fit: non-excludable goods are not necessarily free for everyone—access can be funded by taxes or other public financing, so “always free” is too strong. Excludable goods can certainly be bought or sold; excludability is about restricting access to non-payers, not about whether the good can be purchased. And non-excludable goods are not always private; private goods are excludable, while non-excludable goods are typically public goods or common resources.

Excludability is about whether access to a good can be restricted to those who pay. Excludable goods can be kept from non-payers through prices, licenses, or other controls, so people who don’t pay can be prevented from using them. Non-excludable goods are those where it's difficult or impractical to stop someone from using them, so access can’t be easily denied to non-payers.

This makes the statement about excludable goods and non-excludable goods the best description: excludable goods can be withheld from non-payers, while non-excludable goods cannot be effectively withheld from use.

Why the other statements don’t fit: non-excludable goods are not necessarily free for everyone—access can be funded by taxes or other public financing, so “always free” is too strong. Excludable goods can certainly be bought or sold; excludability is about restricting access to non-payers, not about whether the good can be purchased. And non-excludable goods are not always private; private goods are excludable, while non-excludable goods are typically public goods or common resources.