The Principle of Nonexclusion for Pure Public Goods Means That

question 31

Multiple Choice

The principle of nonexclusion for pure public goods means that the benefits of the good:

• A)are shared.
• B)can be priced.
• C)cannot be withheld from consumers even if they refuse to pay.
• D)are not reduced to any one consumer when a given quantity is consumed by another.

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Definitions:

Cost Of Capital

The rate of return a company must earn on its investments to maintain its market value and attract funds.

Lump Sum

A one-time payment made for a particular purpose, rather than recurring payments over time.

Future Value

The amount of money an investment is expected to grow to over a period of time when interest or dividends are reinvested.