A Good Is Nonrival If

question 22

Multiple Choice

A good is nonrival if

• A) only the government can produce it.
• B) when you pay for the good, you are guaranteed to be the sole consumer.
• C) nobody can be excluded from enjoying the benefits of the good.
• D) when you consume a unit, you have not decreased the amount left for consumption by other people.
• E) anybody can be excluded from enjoying the benefits of the good.

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Definitions:

Coupon Bond

A type of bond that pays the holder a fixed interest payment (coupon) at regular intervals until the maturity date when the principal and the final interest payment are paid.

Yield To Maturity

The total return anticipated on a bond if the bond is held until its maturity date, factoring in its current price, interest payments, and face value.

Par Value

The face value of a bond or stock as stated by the issuing company, which may differ from its market value.

Coupon Rate

The yearly percentage of the bond's face value that is paid out as interest by a bond.