If Non- Payers Cannot Be Excluded from Consuming a Good

question 19

Multiple Choice

If non- payers cannot be excluded from consuming a good this gives rise to the:

• A) pubic good problem
• B) free rider problem
• C) private good problem
• D) fallacy of composition problem

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Definitions:

Time Deposit

A deposit in a financial institution that requires notice of withdrawal or must be left for some fixed period of time.

Junk Bonds

High-risk, high-yield bonds issued by companies with lower credit ratings, reflecting a greater risk of default but offering higher returns to compensate investors.

Real Estate Prices

The amount of money required to purchase ownership or rental rights to land and buildings.

Bank Interest Rates

The percentage charged on loans or paid on savings by banks to customers.