A Public Good, Such as a Community's Emergency Warning Sirens

question 98

Multiple Choice

A public good, such as a community's emergency warning sirens, typically:​

• A)imposes benefits on only a few individuals but imposes costs on many people.
• B)imposes both benefits and costs on relatively few individuals.
• C)imposes benefits on many individuals but imposes the costs on relatively few people.
• D)imposes both benefits and costs on many individuals.
• E)imposes costs on individuals only when logrolling is prevalent in the government.

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Definitions:

Discount

A reduction from the usual cost of something, typically applied to incentivize purchase or payment within a certain timeframe.

Bonds Payable

A long-term liability account on a company's balance sheet representing the amount it owes to bondholders by the maturity date, typically including loans or other forms of debt obtained through issuing bonds.

Contra Account

An account used in financial reporting to reduce the value of a related account when the two are netted together.

Effective Interest Rate

The actual return on an investment or cost of a loan considering the effect of compounding interest, distinct from the nominal rate.