What Are Public Goods

question 91

Multiple Choice

What are public goods?

• A) those that are consumed by the private group that funds them
• B) those that are consumed by the paying and nonpaying public alike
• C) those that are consumed only by those who have paid for them
• D) those that are consumed only by the government that provides them

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Definitions:

APT Model

Arbitrage Pricing Theory Model, an alternative to the Capital Asset Pricing Model (CAPM), asserts that the expected return of a financial asset can be modeled as a linear function of various macro-economic factors or theoretical market indexes.

Security Returns

The gains or losses from investing in a security, usually expressed as a percentage of the initial investment.

Arbitrage Opportunities

Situations where a financial instrument, or a combination of financial instruments, can be bought and sold simultaneously in different markets to profit from price discrepancies.