Practice free →
HomeAP MicroeconomicsEconomicsPositive Externalities and Public Goods › A tornado siren cannot be sold like a private go…

A tornado siren cannot be sold like a private good because the supplier cannot:

ACharge any price at all
BExclude those who do not pay
CBuild more than one siren
DMake any noise at all
Answer & Solution
Correct answer: B. Exclude those who do not pay
1. Selling something requires being able to withhold it. 2. Radio stations, tornado sirens, light houses, and street lights are all nonrivalrous and nonexclusionary. 3. Nonexclusionary means everyone within earshot hears the siren whether they paid or not. 4. That is why such goods are typically funded publicly rather than sold. 5. Building more sirens is perfectly possible; the problem is charging for the first one. _Source: OpenStax Principles of Microeconomics for AP(R) Courses 2e (CC BY 4.0), Ch 13 'Positive Externalities and Public Goods', sections 13.1-13.4_
Solve this in the app — AP Microeconomics practice & 24k+ MCQs →
Related questions