One Benefit to Private Sector Production of a Collective Consumption

question 33

Multiple Choice

One benefit to private sector production of a collective consumption good is _____.

• A)it overcomes the free riding problem
• B)private producers can often bundle the good with something else people value
• C)profits from private companies can be taxed
• D)provides information valuable in allocating future resources

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Definitions:

Bearer Paper

A type of negotiable instrument that is not registered to a specific owner, allowing the holder or bearer of the document to claim the value of the instrument.

Order Paper

A document in legislative bodies listing the order in which bills will be debated or considered.

Promissory Note

A written, legally binding document in which one party promises to pay another a defined sum of money at a specified time or upon demand.

Certificate of Deposit

A time deposit financial product offered by banks to individuals that pays interest and returns the principal after a fixed period.