One Notable Characteristic of a Public Good Is That

question 25

Multiple Choice

One notable characteristic of a public good is that

• A) its production incurs no economic costs.
• B) consumers can easily be denied its benefits.
• C) it is automatically produced by the free market price system.
• D) it can be consumed collectively.
• E) consumers may readily divide it into individual pieces and distribute it among themselves.

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Definitions:

Cumulative

Describing something that increases or accumulates over time, often used in the context of dividends, voting rights, or data accumulation.

Fully Participating

Fully participating describes a type of equity security or preferred stock that has the right to participate in certain additional dividends or distributions beyond a specified amount.

Rights

Legal entitlements or permissions granted to individuals or entities, often referring to stock rights in a corporate context, allowing shareholders to buy new shares before the general public.

Common Stockholders

Individuals or entities that own shares of common stock in a company, giving them voting rights and potential dividends.