If Members of a Winning Coalition Get "Paid" with Things

question 11

Multiple Choice

If members of a winning coalition get "paid" with things like national security, rule of law, primary and secondary education, then this is an example of the government providing:

• A) public goods.
• B) private goods.

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Definitions:

Par Value

The face value of a bond or the stock value stated in the corporate charter, which may differ from its market value.

Carrying Value

The book value of an asset on a company's balance sheet, calculated as the original cost minus accumulated depreciation.

Loss On Redemption

The financial loss incurred when a debt instrument, such as a bond, is repaid before its maturity date.

Effective-Interest Method

A method of calculating the amortized cost of a bond and the amount of interest expense over its relevant period.