For Informal Investment, the Amount Invested by _______ Is the Highest

question 6

Multiple Choice

For informal investment, the amount invested by _______ is the highest, and the median return expected is ____ times the original investment.

• A) Strangers; 1.5
• B) Friends; 2.0
• C) Venture Capitalists; 1.0
• D) Relatives; 1.0
• E) Work Colleagues; 1.5

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Definitions:

Public Good

A product that is non-excludable and non-rivalrous, meaning it can be consumed by multiple people without diminishing availability to others.

Total Quantity Demanded

The sum of all individual quantities of a good or service demanded at a given price level within a specified period.

Public Good

A product that is non-excludable and non-rivalrous in consumption, meaning its use by one individual does not reduce its availability to others.

Excludability

A characteristic of a good or service that allows owners or producers to prevent others from using it without permission.