Which of the following are correct ? (i) The concept of club goods was introduced by James M. Buchanan.…
James M. Buchanan (1965) introduced the economic theory of club goods (i), which are artificially scarce goods (ii) that are non-rival up to a congestion threshold but…
Choose your answer
Which of the following are correct ?
(i) The concept of club goods was introduced by James M. Buchanan.
(ii) Club goods are artificially scarce goods.
(iii) Club goods are non-excludable.
Answer and explanation
Correct answer A
James M. Buchanan (1965) introduced the economic theory of club goods (i), which are artificially scarce goods (ii) that are non-rival up to a congestion threshold but excludable to non-members (making iii false).
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RPSC Assistant Professor (College Education)