Which of the following best describes a club good?

A club good is characterized as being excludable and non-rival. This means that access to a club good can be restricted to certain individuals, making it possible for providers to exclude those who do not pay for or contribute to the good. However, once a person has access to it, their consumption does not diminish the availability of the good to others.

For instance, a subscription-based service or a gym can be considered a club good. Only those who pay or subscribe can use the service, which is the excludable aspect. However, if a member uses the service, it does not prevent other members from also enjoying it at the same time—demonstrating the non-rival characteristic.

In contrast, the other types of goods mentioned in the options illustrate different consumption traits. Public goods are typically non-excludable and non-rival, while private goods are both excludable and rival. Understanding these distinctions is crucial in microeconomics, as it helps in analyzing market behaviors and public policy implications related to resource allocation and consumption.