The distinction between club goods and common property goods is that:

The correct answer highlights the essential characteristics that differentiate club goods from common property goods based on their excludability and rivalry.

Club goods, such as membership-based services or facilities (like a gym or a private park), are excludable, meaning that access can be restricted to certain individuals, often through a fee or membership requirement. Additionally, they are non-rival, which means that one person's use of the good does not diminish the ability of another person to use it; multiple individuals can enjoy the benefits simultaneously without affecting one another.

On the other hand, common property goods, such as fisheries or public grazing lands, are characterized by being non-excludable, meaning that they are accessible to everyone without payment or membership. However, they are rival in consumption, indicating that one person's use of these goods can reduce the availability for others. This can lead to overuse or depletion of the resource, known as the "tragedy of the commons."

Understanding these distinctions is crucial in microeconomics, particularly in discussions around resource management, public goods, and externalities, as they inform policies aimed at regulating usage and maintaining sustainability. The correct answer clearly illustrates these economic concepts, demonstrating the contrasting nature of club goods and common property goods.