Question

Read the following statements carefully and choose the correct answer from the following:
Statement 1: Private goods are those goods, anyone who does not pay for them can be excluded from enjoying its benefits.

Statement 2: In the case of private goods, a person's consumption does not stand in a rival relationship to the consumption of others.

[0.80 marks]

• A. Both the statements are true.
• B. Both the statements are false.
• C. Statement 1 is true and Statement 2 is false.
• D. Statement 2 is true and Statement 1 is false.

Answer 1

The correct option is C Statement 1 is true and Statement 2 is false.

In the case of private goods, anyone who does not pay for the goods can be excluded from enjoying its benefits. If you do not buy a train ticket, you will not be allowed to travel. It is said that a person’s consumption in the case of private goods stands in rival relationship to the consumption of others.