Economics Paper 1 june 2008 question 17

[minafakes]

17- A good is most suitable to be provided by the market if it is

A) excludable and non-rival
B) excludable and rival
C) non-excludable and non-rival
D) non-excludable and rival

I chose answer C but the right answer is B...any explanations please?

 

[Fj{Death-Hunter}Fj]

Read the Question carefully. It says a good provided by the "MARKET", and any good provided by the market is excludable and rival.
The answer you choose is just the opposite. When a good is Non-Excludable and Non-Rival, it is provided by the government!

 

[minafakes]

thank you so much!