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:
Classifying goods by two features—whether access can be excluded and whether one person’s use reduces another’s—is the main idea. A club good is excludable (the club can restrict access to members) and not rival in consumption (one member’s use doesn’t significantly limit others’ ability to use it). That combination is exactly the description: excludable and not rival. Examples include private clubs or golf courses where entry is controlled but multiple members can use the facility without blocking others, at least up to capacity. The other descriptions correspond to different categories: not excludable and rival describes a common resource, excludable and rival describes a private good, and not excludable and not rival describes a public good.

Classifying goods by two features—whether access can be excluded and whether one person’s use reduces another’s—is the main idea. A club good is excludable (the club can restrict access to members) and not rival in consumption (one member’s use doesn’t significantly limit others’ ability to use it). That combination is exactly the description: excludable and not rival. Examples include private clubs or golf courses where entry is controlled but multiple members can use the facility without blocking others, at least up to capacity. The other descriptions correspond to different categories: not excludable and rival describes a common resource, excludable and rival describes a private good, and not excludable and not rival describes a public good.

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