While the Membership of the IMF Had Been Expanded to 185

question 53

Multiple Choice

While the membership of the IMF had been expanded to 185 countries, contributions have increased from $41 billion to

• A)$75 billion.
• B)$175 billion.
• C)$263 billion.
• D)$285 billion
• E)$300 billion.

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Definitions:

External Costs

Costs of a transaction or activity that affect parties who did not choose to incur that cost, often not reflected in the market price.

Social Cost

The total cost to society as a whole, including both private costs incurred by firms or individuals and external costs imposed on others.

Free Riders

A person who receives the benefit of a good without paying for it. Because it is often virtually impossible to restrict the consumption of public goods to those who pay, these goods are subject to free-rider problems.

Public Good

A commodity or service that is provided without profit to all members of a society, either by the government or a private individual or organization.