Because People Can Enjoy the Benefits of Public Goods Whether

question 140

Multiple Choice

Because people can enjoy the benefits of public goods whether they pay for them or not, they are usually unwilling to pay for them. This is known as the

• A) drop-in-the-bucket problem.
• B) nonexcludable problem.
• C) nonrival problem.
• D) free-rider problem.

---

Definitions:

Trend Analysis

The practice of collecting information and attempting to spot a pattern.

Leading Indicators

Objective measures that accurately predict future labor demand.

Transitional Matrices

Mathematical matrices that represent the probabilities of moving from one state to another in a dynamic system, often used in decision making and forecasting.