Every Year as the Clock Nears Midnight on December 31st

question 62

Multiple Choice

Every year as the clock nears midnight on December 31st, the eyes of the world turn to Times Square in New York City to watch the famous ball drop at midnight. The event is open to everyone, but it is advised you arrive early to be able to participate because the square quickly becomes crowded with no space left for latecomers. This celebration is most like a

• A) common resource.
• B) public good.
• C) private good.
• D) natural monopoly.

Understand the basis of rational behavior in economic theory.

Grasp the implications of changes in production possibilities on resource allocation.

Understand the difference between normative and positive economic statements.

Recognize the role and importance of assumptions in economic theories.

---

Definitions:

Sale of Bonds

The process by which a company or government issues bonds to investors in order to raise capital, effectively borrowing from the bond purchasers.

Interest

The cost of borrowing money or the return on invested funds, expressed as a percentage of the principal amount.

Long-Term Investments

Investments held by a company that are intended to be kept for more than one year, such as stocks, bonds, or real estate, potentially generating income or appreciating in value.