Which statement best describes a private good characteristic?

• A. Not excludable and not rival
• B. Not excludable and rival
• C. Excludability and Rivalry
• D. Excludable and not Rival

Answer: (C)

Private goods are defined by two features: excludability and rivalry in consumption. Excludability means the owner can prevent others from using the good unless they pay. Rivalry means one person’s use reduces the amount available for someone else. A classic example is a sandwich: if you buy and eat it, there’s less left for others, and the seller can prevent others from eating it without paying. That combination—excludable and rival—best captures private goods.

If a good were not excludable, people couldn’t be charged for it, which describes public or common-pool characteristics, and if it were not rival, one person’s use wouldn’t affect another’s, like many public services or shared resources at non-diminishing levels. If a good is excludable but not rival, it would be something like a club good, where people can be charged but one person’s use doesn’t significantly reduce another’s.