Which of the Following Is the Best Example of a Public

question 1

Multiple Choice

Which of the following is the best example of a public good?

• A) inoculation against a contagious disease
• B) a streetlight
• C) garbage collection
• D) Internet access

---

Definitions:

Low Default Risk

A classification for bonds or other forms of debt that are deemed to have a minimal chance of the issuer failing to make the required payments.

Money Market

The money market is a segment of the financial market in which financial instruments with high liquidity and very short maturities are traded, intended for short-term borrowing and lending.

Transaction Motive

The need to hold cash to satisfy normal disbursement and collection activities associated with a firm’s ongoing operations.

Liquidity

Measures the ease with which an asset can be converted into cash without significantly affecting its price.