National Defense Is a Classic Example of a Public Good

question 21

Multiple Choice

National defense is a classic example of a public good because

• A)there is no market for private security services.
• B)it is difficult to exclude people from receiving the benefits from national defense once it is provided.
• C)everyone agrees that some level of national defense is important, but only the government knows the optimal amount.
• D)there are no private firms willing to supply defense goods such as tanks and weapons.

Apply knowledge of present value factors in assessing the acceptability of investments.

Evaluate capital investment proposals using net present value and internal rate of return methods.

Appreciate the ease of use and limitations of the cash payback method in capital investment analysis.

Understand the concept of the rule of law and its implications for international business.

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Definitions:

Charles Darwin

A British naturalist best known for his contributions to the science of evolution and the theory of natural selection.

Evolution

The method through which various types of living beings are believed to have evolved and varied from ancient predecessors throughout Earth's history.

Behavior Genetics

A discipline focused on analyzing how genetics and environmental factors impact behaviors.

Genetic Influences

Factors determined by genes inherited from parents that affect various aspects of an individual’s physical traits, behaviors, and susceptibility to certain diseases.