Which characteristic best describes a private good?

• A. Non-excludable and Non-rival
• B. Non-excludable and Rival
• C. Excludable and Rival
• D. Excludable and Non-rival

Answer: (C)

Private goods are defined by two features: you can prevent people from using them unless they pay (excludable), and one person’s use reduces how much is left for others (rival). A sandwich sold in a store fits this perfectly: the seller can restrict who buys it, and when you eat it, there’s less for someone else. That combination—excludable and rival—is what makes a good a private good.

The other descriptions don’t fit as neatly. A non-excludable and non-rival good, like street lighting or national defense, can’t realistically be kept out of by price and doesn’t get used up by one person’s use. A non-excludable and rival good, such as a shared fishery or a crowded park, can’t easily keep people out, but one person’s use diminishes others’ ability to use it. An excludable but non-rival good describes things that are priced or gated but don’t get used up quickly by more people, like some digital resources, which isn’t the typical private-good pattern.