What type of economic good is a subscription to Netflix?

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Study for the University of Central Florida ECO2023 Principles of Microeconomics Final. Prepare with multiple choice questions, flashcards with helpful hints and explanations. Ace your exam!

A subscription to Netflix is considered a club good because it is a type of good that is excludable but non-rivalrous. This means that while access to the service can be restricted to only those who pay for a subscription, multiple subscribers can use the service simultaneously without decreasing its availability to others.

Club goods typically arise in situations where the service can be provided to a large number of people at a relatively low cost once fixed costs have been covered, such as the costs associated with streaming services. This differs from public goods, which are neither excludable nor rivalrous—meaning they are available to everyone and one person's consumption does not diminish the availability to others. Private goods are both excludable and rivalrous, and common property goods are typically non-excludable but rivalrous. Therefore, a subscription to Netflix aligns perfectly with the characteristics of a club good.