Question

public goods differ from private goods in that:
a. their consumption must be regulated by the government.
b. their benefits cannot be denied to anyone.
c. they produce negative externalities.
d. they are not scarce.

Explanation:

Public goods are defined by two key characteristics: non-excludability (benefits cannot be denied to any individual) and non-rivalry. Option a is incorrect because while some public goods are regulated, this is not a defining difference. Option c is wrong as public goods often produce positive externalities, not negative ones. Option d is false because all goods, including public goods, are scarce due to limited resources relative to wants. Only option b reflects the non-excludable nature that distinguishes public goods from private goods (which are excludable).

Answer:

b. their benefits cannot be denied to anyone.