A gym membership is a...

Prepare for the OnRamps Economics College Exam with detailed multiple-choice questions and explanations. Strengthen your understanding and boost your performance!

Multiple Choice

A gym membership is a...

Explanation:
This question tests how we categorize goods by whether they can be excluded from consumption and whether one person’s use reduces another’s ability to use it. A club good is something that can be restricted to members (excludable) but is not typically diminished for others by a single person’s use (non-rival), at least until capacity is reached. A gym membership fits because the gym can deny entry to non-members through the membership requirement, so access is excludable. Normally one person's workout doesn't prevent others from using the equipment or space, so it’s non-rival in consumption—though as the facility becomes crowded, some rivalry can emerge. This combination aligns with a club good. It’s not a private good because, while it is excludable, it isn’t clearly rival in consumption in ordinary conditions. It’s not a public good because it can be restricted to members. It’s not a common good because it isn’t non-excludable; access is controlled.

This question tests how we categorize goods by whether they can be excluded from consumption and whether one person’s use reduces another’s ability to use it. A club good is something that can be restricted to members (excludable) but is not typically diminished for others by a single person’s use (non-rival), at least until capacity is reached.

A gym membership fits because the gym can deny entry to non-members through the membership requirement, so access is excludable. Normally one person's workout doesn't prevent others from using the equipment or space, so it’s non-rival in consumption—though as the facility becomes crowded, some rivalry can emerge. This combination aligns with a club good.

It’s not a private good because, while it is excludable, it isn’t clearly rival in consumption in ordinary conditions. It’s not a public good because it can be restricted to members. It’s not a common good because it isn’t non-excludable; access is controlled.

Subscribe

Get the latest from Examzify

You can unsubscribe at any time. Read our privacy policy