The Fact That It Is Difficult to Prevent People from Using

question 35

Multiple Choice

The fact that it is difficult to prevent people from using public goods once they are produced,even if they have not paid,is known as

• A)the easy- rider problem.
• B)the over- consumption problem.
• C)adverse selection.
• D)the free- rider problem.
• E)moral hazard.

---

Definitions:

Real Rate Of Return

The yearly percent yield earned from an investment, after accounting for variations in price caused by inflation or various external influences.

Inflation Rate

The escalation in overall prices for goods and services, leading to a drop in how much can be bought.

Annual

Relating to or denoting a period of one year.

Nominal Rate

The stated interest rate of a financial product, not adjusted for inflation, representing the face value of interest payments.