Which of the Following Statements Is Correct

question 68

Multiple Choice

Which of the following statements is correct?

• A)A private good is not rival in consumption but is excludable.
• B)A public good is both rival in consumption and excludable.
• C)A common resource is rival in consumption but not excludable.
• D)A natural monopoly is neither rival in consumption nor excludable.

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Definitions:

Reserve Requirement

A regulation set by central banks that determines the minimum amount of reserves a bank must hold against deposits, influencing the bank's capacity to lend.

Total Factor Productivity

A measure of the efficiency of all inputs to a production process, reflecting the output produced per unit of input.

Human Development Index

An index measuring key dimensions of human development: life expectancy, education, and per capita income.

Gini Coefficient

A measure of income inequality within a population, ranging from 0 (perfect equality) to 1 (perfect inequality).