If There Are Negative Externalities That Spill Across Governmental Borders,this

question 30

Multiple Choice

If there are negative externalities that spill across governmental borders,this provides a justification for _____.

• A)private action
• B)larger governments
• C)smaller governments
• D)intergovernmental competition

---

Definitions:

Discount

A reduction applied to the nominal price of goods, services, or securities, often to incentivize purchase or investment.

Treasury Bond

A long-term, interest-bearing security issued by the U.S. government considered a safe investment with maturity periods typically over 20 years.

Coupon

The periodic interest payment made to bondholders during the life of a bond.

Yield To Maturity

The total return anticipated on a bond if the bond is held until it matures, accounting for its current market price, par value, coupon interest rate, and time to maturity.