Because It Is

question 134

Multiple Choice

Because it is

• A) neither excludable nor rival in consumption, a tornado siren is a common resource.
• B) neither excludable nor rival in consumption, a tornado siren is a public good.
• C) excludable but not rival in consumption, a tornado siren is produced by a natural monopoly.
• D) rival in consumption but not excludable, a tornado siren is a common resource.

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Definitions:

Rational Consumers

Individuals who aim to maximize their utility or satisfaction from consumption under the constraints of their budget.

Complete Preferences

A concept in economics where an individual's preferences over a set of goods or outcomes are fully defined, allowing for every pair of outcomes to be compared.

National Unemployment Rate

A measure of the percentage of the labor force that is unemployed and actively seeking employment, often used as a key indicator of the health of a country's economy.

Anchoring Effect

A cognitive bias where an individual's decisions are influenced by a particular reference point or "anchor," sometimes leading to irrational decision-making.