When a Good Is Nonrival in Consumption, Its Most Efficient

question 147

Multiple Choice

When a good is nonrival in consumption, its most efficient price is:

• A) zero.
• B) determined by producers.
• C) greater than zero.
• D) equal to the market price of a similar rival good.

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Definitions:

Desirable Market Outcomes

Market results that are sought after for their positive impact on consumers, producers, and the overall economy.

Households

Units consisting of people living together, either related by blood, marriage, or adoption, making economic decisions as a single entity.

Central Planning

An economic system where the government makes all decisions on the production and distribution of goods and services, typically found in socialist economies.

Government Guiding

The involvement or direction by government agencies in shaping and influencing the economic policies and practices within a country.