A Lighthouse Might Be Considered a Private Good If

question 69

Multiple Choice

A lighthouse might be considered a private good if:

• A)lighthouses were provided by private charities
• B)the government taxes ship owners to provide them the lighthouses they need
• C)the owner of the lighthouse refuses to be subsidised by the government
• D)the owner of the lighthouse can charge nearby port authorities a fee for the lighthouse service

---

Definitions:

Premium

The amount paid for an insurance policy or the price above the nominal or face value of a security or investment.

Swiss Francs

Swiss Francs are the currency of Switzerland, known for their stability and being a safe-haven currency in times of financial market volatility.

Forward Rate

The future interest rate agreed upon in a forward contract, determining the cost of borrowing or lending for future transactions.

Spot Rate

The current market price of a commodity, currency, or security that is available for immediate settlement.