Which of the following characteristics best describes public goods?

Public goods are best defined by their characteristics of being non-rivalrous and non-excludable. This means that one individual's consumption of a public good does not reduce the ability of another individual to consume it; hence, it is non-rivalrous. For example, when one person enjoys the benefits of street lighting, it does not diminish the light available for others.

Additionally, public goods are non-excludable, which means it is difficult or impossible to prevent individuals from accessing these goods once they are provided. This characteristic often leads to issues such as the "free rider problem," where individuals may benefit from the good without paying for it, resulting in under-provision of the good in a market economy.

In contrast, the other options describe characteristics associated with private goods or other types of goods that do not align with the nature of public goods. Understanding these definitions is crucial in identifying how resources are allocated in an economy and the challenges policymakers face in providing public goods effectively.