Among the Following Examples, the One That Best Illustrates a Public

question 108

Multiple Choice

Among the following examples, the one that best illustrates a public good is the

• A) laptops used by students in a college or university.
• B) movies produced by Hollywood companies.
• C) bike paths around a city or town.
• D) airline tickets bought by vacationers.

---

Definitions:

Real Income

The earning power of a person's money, considering the effects of inflation on purchasing power.

Wages

Payment to resource owners for their labor.

Externality

A consequence of an economic activity experienced by unrelated third parties; it can be either positive or negative.

Precision-estimates

The accuracy of an estimate in terms of how closely it predicts the actual value, often relevant in statistical analyses and forecasting.