Which statement accurately describes public goods?

The statement that public goods are goods that are non-excludable and non-rivalrous is accurate and helps in understanding the fundamental characteristics of public goods in economics.

Non-excludable means that once a public good is made available, it cannot be withheld from anyone. This implies that individuals cannot be easily prevented from using the good, which often leads to free-rider problems where some may benefit without contributing to its provision. A classic example of a non-excludable good is national defense; once it is provided, everyone in the country benefits regardless of whether they have paid taxes to fund it or not.

Non-rivalrous means that one person's consumption of the good does not reduce the availability of the good for others. For instance, when one person enjoys a public park, it does not diminish the enjoyment of that park by others. This characteristic is essential in distinguishing public goods from private goods, where one person's consumption reduces the quantity available for others.

Understanding these characteristics is crucial in public finance and policy-making, as it highlights the role of governments in providing such goods due to their unique nature and the challenges they present in a purely market-driven environment.