One Way the Government Decides How to Pay for a Public

question 81

Multiple Choice

One way the government decides how to pay for a public good is:

• A)if they can make the good excludable and charge its users.
• B)the ease of collecting payout.
• C)the transfer of surplus.
• D)All of these are ways the government allocates payment of public goods.

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Definitions:

Market Rate

Market rate, in economics, refers to the prevailing price of goods, services, or labor in a competitive market, determined by supply and demand dynamics.

Risk-Free Rate

The theoretical return on an investment with no risk of financial loss, often represented by the yield on government securities.

Opportunity Cost

The cost of forgoing the next best alternative when making a decision.

Capital

The financial assets or resources that individuals or companies use to fund their operations and invest in their businesses.