A Lighthouse Might Be Considered a Private Good If

question 261

Multiple Choice

A lighthouse might be considered a private good if

• A)there is a second lighthouse nearby, thus preventing a monopoly.
• B)the owner of the lighthouse is able to exclude beneficiaries from receiving the benefits of the lighthouse.
• C)ships are able to enjoy the benefits of the lighthouse without paying for the benefit.
• D)a nearby port authority is able to avoid paying any fees to the lighthouse owner.

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Definitions:

Check Clearing

Check clearing is the process through which banks verify and process the transfer of funds from the check issuer's account to the recipient's account, finalizing the transaction.

Transit Float

The time difference between when a payment is made and when it is available in the recipient's account.

Processing Float

The time delay between when a check is written and when it is actually deducted from the payer's account, often utilized in managing company cash flows.

Cash Balances

Cash balances refer to the amount of currency, coins, and balances in checking and savings accounts that a company holds at any given time.