Which of the Following Situations Is Not  Used as a Justification

question 53

Multiple Choice

Which of the following situations is not  used as a justification for government?

• A)negative externalities
• B)removal from the prisoner's dilemma
• C)nonexcludable goods
• D)positive externalities
• E)free markets encourage innovation

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Definitions:

Preferred Stock

A type of share in a corporation that gives the owner a greater entitlement to the firm's earnings and assets than holders of common stock.

Dividend Growth Model

An approach to valuing a company's shares by calculating the present value of its expected dividends through discounting.

Cumulative Voting

A voting system that allows shareholders to allocate all of their votes to one candidate or distribute them among multiple candidates during an election.

Preferred Stock

A class of ownership in a corporation that has a higher claim on assets and earnings than common stock, often with dividends that are paid out before those of common shares.