A Good Is Considered Nonexcludable If

question 17

Multiple Choice

A good is considered nonexcludable if

• A) many individuals can share in the consumption of the same unit of the good.
• B) the consumption of the good by one individual lowers the amount available for others.
• C) it is impossible or very costly to exclude nonpaying customers from receiving the good.
• D) its production is financed through tax revenue rather than market prices.

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Definitions:

Production Sector

A segment of the economy that includes the activities involving the manufacturing and production of goods.

Consumption Sector

Part of the economy that involves the purchase of goods and services by individuals and households.

Real Interest Rate

The interest rate adjusted for inflation, reflecting the true cost of borrowing or the true yield on an investment.

Nominal Rate

The interest rate before adjustments for inflation, as opposed to the real rate, which is adjusted for the effects of inflation.