What does excludability mean for goods and services?(1 point)

Question

Responses

An excludable good or service's availability is dependent on payment.
An excludable good or service's availability is dependent on payment.

The good or service is subject to the free-rider problem.
The good or service is subject to the free-rider problem.

An excludable good or service's availability to one consumer can be affected by another consumer.
An excludable good or service's availability to one consumer can be affected by another consumer.

The good or service has a higher social cost than private cost.

Answer 1

The correct response is:

An excludable good or service's availability is dependent on payment.

Excludability refers to the property of a good or service that allows the provider to prevent individuals from using it if they do not pay for it, which allows for the recovery of costs associated with the provision of that good or service.