Sia
Question
Macroeconomics
Posted 10 months ago
Which of the following best describes something nonrival in consumption?
Choose 1 answer:
(A) watching a streaming video service with unlimited bandwidth
(B) a delicious chocolate tart
(C) a dance party in a small venue that requires a ticket to be let in
(D) a seat on an airplane going to a tropical beach
(E) five friends splitting gas money to drive to school
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Answer from Sia
Posted 10 months ago
Solution
a
Nonrival Consumption: Nonrivalry in consumption means that one person's consumption of a good does not reduce the amount available for others to consume
b
Analyzing Options: We need to identify which option allows for consumption that does not diminish the availability of the good for others
c
Option Evaluation:
- (A) Watching a streaming video service with unlimited bandwidth is nonrival because one person's viewing does not prevent others from watching the same content.
- (B) A delicious chocolate tart is rival in consumption; once it is eaten, it is gone.
- (C) A dance party in a small venue that requires a ticket to be let in is rival because the space is limited and one person's attendance prevents another from attending.
- (D) A seat on an airplane going to a tropical beach is rival; once the seat is taken, it cannot be used by another person.
- (E) Five friends splitting gas money to drive to school is not about the consumption of a good but rather the sharing of a cost, which is not relevant to nonrival consumption
Answer
(A) watching a streaming video service with unlimited bandwidth
Key Concept
Nonrival Consumption
Explanation
Nonrival consumption refers to a situation where the use of a good by one individual does not reduce its availability to others, as exemplified by streaming services with unlimited bandwidth.
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