Which of the Following Problems Can Be Associated with Goods

question 95

Multiple Choice

Which of the following problems can be associated with goods characterized by nonexclusion?

• A)Externality
• B)Decreasing returns to scale
• C)Adverse selection problem
• D)Free riding

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Definitions:

Net Exporter

A country that exports more goods and services than it imports, leading to a positive trade balance.

Import Quotas

Restrictions imposed by a government on the quantity of a good that can be imported into a country, often used to protect domestic industries.

Comparative Advantage

The ability of an entity to produce goods or services at a lower opportunity cost than others, driving specialization and trade benefits.