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Assertion (A) : Use of goods and services from which one can be excluded are pure private goods.

Reason (R) : Such goods and services are not provided free by the State.
Codes :

  • A.Both (A) and (R) are correct and (R) is the correct explanation of (A).
  • B.Both (A) and (R) are correct, but (R) is not the correct explanation of (A).
  • C.(A) is correct, but (R) is incorrect.
  • D.(A) is incorrect, but (R) is correct.

Answer: A

Both statements are correct and the reason explains the assertion, so (A) is the key. A pure private good is one that is both rival and excludable: one can be kept from using it unless one pays. Since the producer can exclude non-payers, such goods are sold in the market and are not provided free by the State, which is the point made in the reason. Options (B), (C) and (D) are wrong.

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