A Public Good Is a Good or Service for Which

question 10

Multiple Choice

A public good is a good or service for which exclusion is _____ and which is _____ in consumption.

• A) possible; rival
• B) possible; nonrival
• C) not possible; rival
• D) not possible; nonrival

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Definitions:

Opportunity Cost

Waiving prospective gains from various alternatives by settling on one option.

Foregone Alternative

The option or course of action that is given up when another is chosen; closely related to the concept of opportunity cost.

Opportunity Cost

The charge of rejecting the following prime opportunity in the process of decision-making.

Sunk Costs

Sunk costs are expenditures that have already been incurred and cannot be recovered, and should not affect future investment decisions or operations.