Which of the following is a club good?

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

Multiple Choice

Which of the following is a club good?

Explanation:
A club good is excludable—you can restrict access to those who pay or belong to a group—and not rival in consumption for a range, meaning one person's use doesn’t significantly reduce another's, at least until capacity is reached. So the option that describes something both excludable and not rival fits a club good. An example is a private club or gated park where members can access, and many members can use it without diminishing others’ enjoyment (until crowding becomes an issue). If it gets crowded, it becomes rival as congestion reduces each person's enjoyment. In contrast, private goods are excludable and rival; common resources are not excludable and rival; public goods are not excludable and not rival.

A club good is excludable—you can restrict access to those who pay or belong to a group—and not rival in consumption for a range, meaning one person's use doesn’t significantly reduce another's, at least until capacity is reached. So the option that describes something both excludable and not rival fits a club good. An example is a private club or gated park where members can access, and many members can use it without diminishing others’ enjoyment (until crowding becomes an issue). If it gets crowded, it becomes rival as congestion reduces each person's enjoyment. In contrast, private goods are excludable and rival; common resources are not excludable and rival; public goods are not excludable and not rival.

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