Which of the Following Is Not a Characteristic of a Public

question 209

Multiple Choice

Which of the following is not a characteristic of a public good?

• A) It is scarce.
• B) It is not diminished in amount as additional people consume the product.
• C) Its benefits cannot be withheld from anyone.
• D) It is free.
• E) It yields widespread benefits.

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Definitions:

Listing Requirements

The set of conditions imposed by a stock exchange on companies that want to list their shares for trading, which may include financial thresholds and corporate governance standards.

Clientele Effect

A theory suggesting that the stock price movements of a company are influenced by the tax preferences and dividend policies preferred by its current shareholders.

Information Content Effect

The impact of news announcements on stock prices, reflecting changes in investor perceptions.

Efficient Markets Hypothesis

The theory that financial markets are "efficient" in reflecting information about the prices of securities, meaning that existing share prices always incorporate and reflect all relevant information.