Which of the following are the features of public goods?

Option 1 -> These characteristics define private goods, not public goods.

Option 2 -> These characteristics define common resources (like fisheries), not public goods.

Option 3 -> These are the defining features of public goods - consumption by one person doesn't reduce availability for others (non-rivalrous) and people cannot be excluded from using them (non-excludable).

Option 4 -> These characteristics define club goods (like streaming services), not public goods.

Hence, Option 3: Non-Rivalrous and non-excludable -> Public goods have two key characteristics: (1) Non-rivalrous - one person's consumption does not diminish another person's ability to consume the good (e.g., national defense protects everyone equally), and (2) Non-excludable - it is difficult or impossible to prevent people from using the good once it is provided (e.g., everyone benefits from street lighting). Classic examples include national defense, public fireworks displays, and lighthouses. These characteristics often lead to market failure, as private firms have little incentive to provide these goods since they cannot exclude non-payers, resulting in the free-rider problem. -> correct