When Benefits Are Highly Concentrated, but Costs Are Diffused Across

question 174

Multiple Choice

When benefits are highly concentrated, but costs are diffused across a large number of people:

• A) the market tends to overproduce these goods.
• B) the market tends to underproduce these goods.
• C) the government tends to overproduce these goods.
• D) the government tends to underproduce these goods.

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Definitions:

Indorser

The person who signs and transfers a negotiable instrument, such as a check or promissory note, to another party.

Secondary Liability

The legal obligation to pay a debt if the primary obligor defaults, usually applied in cosigning contexts.

Blank Check

A check signed by the drawer with the amount left blank, allowing the payee to enter any amount.

Raising The Check

Increasing the amount payable on a check, often through unauthorized alteration.