A Public Good Is a Good

question 105

Multiple Choice

A public good is a good:

• A)whose consumption is nonexcludable and nonrival.
• B)for which the marginal cost of adding another consumer is high.
• C)that the market will usually provide efficiently.
• D)whose consumption is rival.

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Definitions:

Earnings

The amount of money that an individual or business receives in exchange for providing a good or service or through investing capital.

Term Life Insurance

A type of insurance that provides protection for the policyholder; term insurance covers the policyholder for a specified period of time, usually 5, 10, or 20 years; after that time, the policy is no longer in effect, unless it is renewed for another term.

Premium

The amount paid for an insurance policy.

Face Value

The nominal or stated value of a security or financial instrument, such as a bond, note, or coin.