In Economics, a Rival Good Is One That

question 24

Multiple Choice

In economics, a rival good is one that:

• A) cannot be consumed by more than two people at a time.
• B) can be consumed by more than one person at a time.
• C) is congested if used by more than one person at a time.
• D) cannot be consumed by more than one person at a time.
• E) None of these answers is correct.

---

Definitions:

Initial Endowment

The initial allocation of goods, resources, or money which an individual or entity possesses at the start of a consideration period.

Weak Axiom

A principle in consumer theory that, if a consumer chooses bundle A over bundle B when both are affordable, they will not choose B over A if A's price decreases and B's price stays the same or increases.

Revealed Preference

A theory that determines a consumer's preferences based on their purchasing behavior, under the assumption that their choices reveal their valuation of goods.

Insurance Agent

A professional who sells, solicits, or negotiates insurance policies on behalf of an insurer.