Public and Private Goods Practice Test

A city offers unmetered street parking on certain blocks. Drivers do not pay to park and the city does not restrict access, but each parking space taken by one driver prevents other drivers from using that space. Based on the characteristics described, which type of good is this?

A city is considering the following goods and services:

• Street lighting: once installed, it illuminates the street for everyone and it is not feasible to exclude nonpaying residents.
• Metered parking spaces: drivers must pay at a meter to use a space, and once occupied, the space is unavailable to others.
• Unrestricted groundwater from a shared aquifer: any farmer can pump water without a permit, and pumping by one farmer reduces water available to others.
• Members-only gym: only paying members can enter, and it is typically not crowded enough to prevent others from working out. Based on the characteristics described, which good would be underprovided by the market due to the free-rider problem?