Option 1 -> Rivalrous and excludable are characteristics of private goods, not public goods.
Option 2 -> Rivalrous and non-excludable describe common resources, where consumption reduces availability but exclusion is difficult.
Option 3 -> Non-rivalrous and non-excludable are the defining features of public goods.
Option 4 -> Non-rivalrous and excludable describe club goods, which can be exclusively provided.
Hence, Option 3: Non-rivalrous and non-excludable -> Public goods are non-rivalrous, meaning one person's consumption does not diminish another's ability to consume (e.g., national defense protects everyone equally). They are non-excludable, meaning it's impossible or impractical to prevent people from using them (e.g., everyone benefits from clean air). Examples include street lighting, public parks, and broadcast television. These characteristics distinguish public goods from private goods, which are both rivalrous and excludable -> correct