-Paul and Paula Are the Only Members of Society

question 19

Multiple Choice

-Paul and Paula are the only members of society. The table above gives their marginal benefits from missile gunboats, a public good. Determine the marginal benefit to society of the second missile gunboat.

• A) $8 million
• B) $10 million
• C) $12 million
• D) $4 million
• E) $16 million

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Definitions:

Rule of Law

The principle that all individuals, entities, and government are accountable to laws that are publicly promulgated, equally enforced, and independently adjudicated.

Confiscated

Property that has been taken away from its owner by a governmental authority as a penalty or for regulatory reasons.

Transactional Risks

The potential for financial loss that a company faces when engaging in business transactions, especially in foreign markets.

Customary Law

Laws derived from experience, practice, collective wisdom, and shared philosophy to set the boundaries and rights that define relationships between community members.