Free riding is not a problem in the market for a private good because
A) people who do not pay for the good can be excluded from consumption.
B) the good is a rival good.
C) the market eliminates the problem of externalities.
D) The question errs because free riding is a problem in providing private goods.
A
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When banks calculate the losses the institution would incur if an unusual combination of bad events happened, the bank is using the ________ approach
A) stress-test B) value-at-risk C) trading-loss D) maximum value
A capital inflow occurs when:
A. money saved domestically is invested in another country. B. money saved in another country finances domestic investment. C. there is a negative difference between capital inflows and capital outflows for a country. D. there is a positive difference between capital inflows and capital outflows of a country.