Public Schools, Parks, Libraries, and Roads Are Paid for Largely

question 19

Multiple Choice

Public schools, parks, libraries, and roads are paid for largely through tax revenue because

• A)society finds them so valuable that citizens are happy to pay for their full cost.
• B)these goods create a free-rider problem.
• C)if they were funded privately, too many of these goods would be produced.
• D)All of the above are correct.

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Definitions:

Available-For-Sale Securities

Debt or equity securities not classified as held-to-maturity or trading securities, and are purchased with the intention of selling before they mature.

Controlling Influence

The power to govern the financial and operating policies of an entity so as to obtain benefits from its activities, often through ownership or agreement.

Equity Securities

Equity Securities are financial instruments that represent ownership interest in a company, such as stocks, entitling the holder to a share of the entity's profits and assets.

Investor

An individual or entity that allocates capital with the expectation of receiving financial returns.