If No One Can Be Excluded from Receiving the Benefits

question 125

Multiple Choice

If no one can be excluded from receiving the benefits of a good or service and the consumption of the good or service does not decrease the amount available to someone else from consuming it,then the good

• A) is a private good.
• B) is a common resource.
• C) is a public good.
• D) is a natural monopoly.
• E) Both answers B and C are correct.

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Definitions:

Correlated

Refers to the relationship between two variables where a change in one can be associated with a change in the other.

Market

A place or system where buyers and sellers interact to trade goods, services, or securities.

Expected Return

This refers to the average amount of profit or loss one can expect from an investment based on its historical performance and probabilities of outcomes.

Beta

A measure of a stock's volatility in relation to the overall market; used in the capital asset pricing model (CAPM) to estimate the return of an asset based on its risk.