A Public Good, Such as a Community's Emergency Warning Sirens

question 98

Multiple Choice

A public good, such as a community's emergency warning sirens, typically

• A)imposes benefits on only a few individuals but imposes costs on many people
• B)imposes both benefits and costs on relatively few individuals
• C)imposes benefits on many individuals but imposes the costs on relatively few people
• D)imposes both benefits and costs on many individuals
• E)only imposes costs on individuals when logrolling is prevalent in the government

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Definitions:

Trade Price

The price at which goods are sold between companies before they reach the final consumer, often lower than the retail price.

Normal Good

A normal good is a type of good for which demand increases when income increases, and falls when income decreases but price remains constant.

Domestic Price

The cost of products or services inside the confines of a nation, in contrast to prices for international trade or exports.

Trade Price

The price at which goods or services are actually bought and sold between parties in the marketplace.