If Left to the Private Market,the Amount of Police Protection

question 194

Multiple Choice

If left to the private market,the amount of police protection provided in a city would be _____ than it is now,and free riders would pay _____ for police protection.

• A)more;more
• B)more;nothing
• C)less;nothing
• D)less;a higher price

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Definitions:

Promised Benefits

The guaranteed or expected advantages or returns, often from investments, insurance policies, or employment contracts.

Real Rate

refers to the interest rate adjusted for inflation, providing a more accurate measure of the true cost of borrowing or the real yield on an investment.

Tax Rate Structure

The way in which different rates of taxation are applied to different levels of income or other bases.

Promised Benefit Levels

The specific amount of benefits, often related to pensions or insurance, guaranteed to recipients based on a predetermined plan.