A Public Good Is a Good

question 142

Multiple Choice

A public good is a good:

• A) for which exclusion is prohibitively costly.
• B) for which the marginal cost of adding another consumer is high.
• C) that the market will usually provide efficiently.
• D) for which exclusion is possible.

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Definitions:

Unrealized Loss Account

An account that reflects losses which have occurred on paper due to changes in market values but have not been actually realized through a transaction.

Short-Term Stock Investments

Investments in stock intended to be held for a short duration, typically less than one year, for earning a quick profit.

Fair Value

The estimated market value of an asset or liability, based on current prices in an active market.

Stock Market

A public market for buying and selling equity securities and derivatives of companies, facilitating capital exchange between investors.