Which of the Following Is a Point of Similarity Between

question 87

Multiple Choice

Which of the following is a point of similarity between public goods and the goods that generate an external benefit?

• A)Both are overproduced
• B)A free rider problem arises in case of both the goods
• C)Both result in inefficient allocation of resources
• D)Both can be produced at zero marginal cost

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Definitions:

Johnson Amendment

A provision in U.S. tax code prohibiting 501(c)(3) nonprofit organizations from endorsing or opposing political candidates.

Internal Revenue Code

A comprehensive, codified set of laws that govern federal tax administration in the United States.

Political Activity

Actions or efforts aimed at influencing government policy or the election of candidates for political office.

House Rule 25

A specific regulation or policy within an organization or institution, often relating to governance or operational procedures, though the content can vary widely depending on the context.