A Statement Describing How the World Is Now

question 28

Multiple Choice

A statement describing how the world is now

• A) is a normative statement.
• B) is a positive statement.
• C) would only be made by an economist speaking as a policy adviser.
• D) would only be made by an economist employed by the government.

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Definitions:

Free-rider Problem

A situation where individuals consume a good without contributing to its cost, typically in the context of public goods.

Public Good

A good or service offered to every member of a community for free, supplied by either governmental bodies or private entities without the intention of making a profit.

Optimal Level

The most efficient, beneficial, or favorable point in a process or activity, often associated with achieving the best outcome or maximum productivity.

Public Good

A good that is non-excludable and non-rivalrous, where one person's enjoyment of the good does not diminish the ability of others to enjoy it, typically provided by the government.