Which of the Following Statements Is True

question 83

Multiple Choice

Which of the following statements is true?

• A)If a good is nonrivalrous in consumption then it is nonexcludable, too.
• B)A good can be rivalrous in consumption and nonexcludable, too.
• C)An apple is nonrivalrous in consumption.
• D)Many economists maintain that the market fails to produce nonexcludable private goods.

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Definitions:

Uninsurable Risks

Risks that are too unpredictable or certain to occur, making it impossible for insurance companies to accurately price or offer coverage.

Nominal Rate of Interest

The rate of interest before adjustments for inflation, reflecting the market rate at which money can be borrowed.

Inflation Rate

The percentage increase in the price level of goods and services in an economy over a period of time, usually a year.

Usury Laws

Regulations governing the amount of interest that can be charged on a loan, designed to protect consumers from excessive rates.