The Opportunity Cost of Providing a Public Good to an Additional

question 316

Multiple Choice

The opportunity cost of providing a public good to an additional individual is

• A) infinite.
• B) zero.
• C) impossible to determine.
• D) high because of the exclusion principle.

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Definitions:

Profit

The financial gain obtained when the revenue from business activities exceeds the expenses, costs, and taxes associated with sustaining the activity.

Top-Down Leadership

A leadership approach where decisions and policies are initiated by the upper levels of management and then cascaded down through the ranks.

Culture of the Organization

The shared norms, values, and practices that guide and shape behaviors and attitudes within a company or institution.

Incentives

Rewards or benefits offered to motivate individuals or groups to behave in a certain way or to achieve specific objectives.