How Are Club Goods Classified

question 119

Multiple Choice

How are club goods classified

• A)excludable but not rival in consumption
• B)rival in consumption but not excludable
• C)both excludable and rival in consumption
• D)neither excludable nor rival in consumption

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Definitions:

Discount Rate

A percentage used to calculate the present value of future cash flows or investments.

Present Value

The current worth of a future sum of money or stream of cash flows given a specified rate of return, discounting future amounts to their present values.

Annual Rate

Typically refers to the interest rate for a whole year, often applied in terms of loans, investments, or savings.

Invests

The act of allocating resources, usually money, with the expectation of generating an income or profit.