Which of the Following Statements Is Not Correct

question 133

Multiple Choice

Which of the following statements is not correct?

• A)Some goods that are often thought of as public goods may be private goods in certain circumstances.For example, a lighthouse that protects a privately owned port may be a private good.
• B)Some goods that are often though of a private goods may be public goods in certain circumstances.For example, a candy bar could be a public good.
• C)Antipoverty programs can be an example of a public good because everyone benefits from living in a society with less poverty.
• D)The government must provide national defense because it is impossible to exclude people from its benefit, and the consumption of national defense is nonrival in consumption.

---

Definitions:

Relative PPP

Stands for Relative Purchasing Power Parity, a theory that suggests that in the long term, exchange rates should adjust so that similar goods cost the same in different countries.

UIP

Uncovered Interest Parity, a financial theory stating that the difference in interest rates between two countries will equal the expected change in exchange rates between their currencies.

Spot Exchange Rate

The current exchange rate at which currencies can be exchanged for immediate delivery, reflecting the market's immediate valuation.

U.S. Inflation

The rate at which the general level of prices for goods and services is rising, and, consequently, the purchasing power of currency is falling within the United States.