When a Good Is Not Easily Excludable, What People Pay

question 73

Multiple Choice

When a good is not easily excludable, what people pay for it will:

• A)reflect the real value they place on it.
• B)exactly equal the social benefit of the good.
• C)not necessarily reflect the real value they place on it.
• D)be greater than the social benefit of the good.

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Definitions:

Repossessing

The act of taking back possession of property, often because of failure to comply with a contract, such as defaulting on payments.

Guarantee

A formal assurance or promise, often by a manufacturer or seller, that certain conditions will be fulfilled, such as the quality or durability of a product.

Indemnity

A financial compensation mechanism for loss or damage, or provision for protection against potential financial liability.

Guarantee

A formal promise or assurance, typically in writing, that certain conditions will be fulfilled, particularly relating to product quality or loan repayment.