Which of the Following Is an Example of a Good

question 77

Multiple Choice

Which of the following is an example of a good that is produced by the public sector but consumers purchase it in proportion to the benefit received?

• A) milk
• B) public education
• C) first-class mail delivery from the U.S. Post Office
• D) national defense

---

Definitions:

Reinvestment Rate

The rate at which an investor plans to reinvest interest or dividend income from an investment.

Zero-Coupon Bonds

Bonds that don't pay periodic interest payments, but are sold at a discount from their face value and mature at that face value.

Expected Interest Rate

The anticipatory rate at which interest is projected to be applied on borrowed funds or received on investments.

Premium To Par

The amount by which the price of a bond exceeds its principal (or par) value, often occurring when the bond's interest rate is higher than current market rates.