Suppose Your Roommate Approaches You and Asks If You Would

question 146

Multiple Choice

Suppose your roommate approaches you and asks if you would like to split the cable bill for your apartment.You decline,citing that you are not home often and are more likely to stream content on your laptop.Your roommate purchases a deluxe cable package,and you frequently watch programs on the television in your apartment.This is an example of a ________.

• A) common pool resource
• B) club good
• C) free-rider problem
• D) government provision

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Definitions:

Utility Function

A mathematical representation describing how a consumer ranks different bundles of goods based on the level of satisfaction each bundle provides.

Budget Constraint

Describes the combinations of goods and services that a consumer can purchase given their income and the prices of the goods.

Income

Earnings received by an individual or entity, typically in the form of wages, salaries, or investment returns, over a specified period.

Apples

Edible fruits from the apple tree, used in various cuisines and known for their health benefits.