Which of the Following Statements Is Correct

question 400

Multiple Choice

Which of the following statements is correct?

• A)Environmental degradation is an example of a free rider problem..
• B)The division between public goods and common resources is clear-cut.
• C)Some goods, such as lighthouses, may be either private or public goods.
• D)The free-rider problem prevents governments from supplying public goods.

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Definitions:

Bank Loan

A sum of money lent at interest by a bank to a borrower, usually on collateral security, for a certain period.

Collection Float

The time period between when a check is deposited and when the funds are made available.

Chequing Account

A bank account from which money can be withdrawn without notice, typically used for day-to-day spending and bill payments.

Deposit

A deposit refers to a sum of money placed into an account or given to another party as security for future transactions, often used in banking, leasing, and rental agreements.