Excludability Is the Property of a Good Whereby

question 99

Multiple Choice

Excludability is the property of a good whereby

• A) one person's use diminishes other peoples' use.
• B) a person can be prevented from using it.
• C) a good is private, not public.
• D) a good is public, not private.

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Definitions:

Principal Agent Problem

A dilemma in economics and organizational theory where one party (the agent) is supposed to act in the best interest of another party (the principal) but might act in their own interest instead.

Shirking

Working at less than the expected rate of productivity, which reduces output. Shirking is more likely when workers are not monitored, so that the cost of lower output falls on others.

Corporate Business Structure

Corporate business structure refers to the legal organization of a company, often characterized by the issuance of shares, a board of directors, and liability protection for its shareholders.

Productive Contribution

The input or service provided by a factor of production towards the making of goods and services.