How Are Collective (Or Public)goods Often Financed

question 14

Multiple Choice

How are collective (or public) goods often financed?

• A) through the taxation system
• B) through sale at market price
• C) through voluntary contributions from free riders
• D) through private sponsors

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Definitions:

Communism

A political and economic ideology that advocates for a classless society in which all property is publicly owned, and each person works and is paid according to their abilities and needs.

European Economic Community

An economic organization that aimed to bring about economic integration among its member states, a precursor to the European Union.

Trade Barriers

Measures implemented by countries to regulate or restrict trade with other countries, including tariffs, quotas, and import bans, typically aimed at protecting domestic industries.

NATO

NATO, the North Atlantic Treaty Organization, is a military alliance formed in 1949 by countries in North America and Europe to provide collective security against aggression.