Which of the Following Statements Concerning a Public Good Is

question 174

Multiple Choice

Which of the following statements concerning a public good is false?

• A)It is impossible to exclude nontaxpayers from the enjoyment of the public good.
• B)All benefits associated with the production and use of a public good are received by the government.
• C)The availability of a public good to one person simultaneously makes it available to all members of society.
• D)The private sector does not have an economic incentive to produce a socially optimal amount of a public good.

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Definitions:

Loan

An amount of money that is lent to someone, which is expected to be paid back with interest.

Interest

The cost of borrowing money, typically expressed as an annual percentage of the principal amount.

Months

Units of time into which a year is divided, normally consisting of 28 to 31 days.

Deposit

A sum of money placed or kept in a bank account, usually to gain interest.