The Human Resources Director of a Large Corporation Wishes to Develop

question 153

Essay

The Human Resources Director of a large corporation wishes to develop an employee benefits
package and decides to select 500 employees from a list of all (N = 40,000)workers in order to
study their preferences for the various components of a potential package.All the employees in
the corporation constitute the _______.

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Definitions:

Nonrivalry

The idea that one person’s benefit from a certain good does not reduce the benefit available to others; a characteristic of a public good.

Nonexcludability

The inability to keep nonpayers (free riders) from obtaining benefits from a certain good; a characteristic of a public good.

Public Goods

Goods that are non-excludable and non-rivalrous, meaning their use by one person does not reduce availability to others.

Consumption Goods

Products and services that are consumed by the ultimate consumer and do not serve as input for the production of other goods or services.