When Might a Lighthouse Be Considered a Private Good

question 34

Multiple Choice

When might a lighthouse be considered a private good

• A)if there is a second lighthouse nearby, thus preventing a monopoly
• B)if the owner of the lighthouse is able to exclude beneficiaries from receiving the benefits of the lighthouse
• C)if ships are able to enjoy the benefits of the lighthouse without paying for the benefit
• D)if a lighthouse benefits many ship captains

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Definitions:

Null Hypothesis

A statement of no effect or no difference, used as a starting assumption for statistical significance testing.

Grand Mean

The mean of means, calculated by taking the average of several group means.

Completely Randomized

A design in experiments where all subjects have an equal chance of being assigned to any group or treatment.

Factorial Design

An experimental strategy used to test the effect of two or more variables across multiple levels simultaneously.