Which of the following explains why flood control is a public good?
A. There are external benefits associated with its consumption.
B. Flood control is paid for by taxpayers.
C. It is not divisible and therefore cannot be kept from people who do not pay.
D. The private sector usually produces flood control projects.
Answer: C
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The money supply, as measured by M1, consists almost entirely of currency
Indicate whether the statement is true or false
If you wanted to compare the quantity of output of a country across time periods, which of the following would you use?
What will be an ideal response?
Supply will become more elastic when
A) a time period lengthens. B) the time period shortens. C) the good is important to consumers. D) there are good substitutes for the goods.
The person most likely to receive a payment from a corporation in a year of losses is the
A) bondholder. B) common stockholder. C) preferred stockholder. D) investment banker.