Author Question: Does the benefits received principle work well for all public ... (Read 65 times)

Collmarie

  • Hero Member
  • *****
  • Posts: 569
Does the benefits received principle work well for all public goods?

Question 2

Assume a U.S. firm invests 1,500 to buy a one-year U.K. bond. What is the dollar value of the proceeds if the dollar return on the U.K. bond is 20 percent at maturity?
 a. 1,800
  b. 1,500
  c. 1,200
  d. 1,000
  e. 500



Anton

  • Sr. Member
  • ****
  • Posts: 302
Answer to Question 1

The benefits received principle means that the individuals receiving the benefits are those who pay for them. Although this principle may work for some private goods, it does not work well for public goods such as national defense and the judicial system. Because we collectively consume national defense, it is not possible to find out who benefits and by exactly how much.

Answer to Question 2

a



Related Topics

Need homework help now?

Ask unlimited questions for free

Ask a Question
 

Did you know?

Disorders that may affect pharmacodynamics include genetic mutations, malnutrition, thyrotoxicosis, myasthenia gravis, Parkinson's disease, and certain forms of insulin-resistant diabetes mellitus.

Did you know?

Carbamazepine can interfere with the results of home pregnancy tests. If you are taking carbamazepine, do not try to test for pregnancy at home.

Did you know?

As many as 20% of Americans have been infected by the fungus known as Histoplasmosis. While most people are asymptomatic or only have slight symptoms, infection can progress to a rapid and potentially fatal superinfection.

Did you know?

Stroke kills people from all ethnic backgrounds, but the people at highest risk for fatal strokes are: black men, black women, Asian men, white men, and white women.

Did you know?

One way to reduce acid reflux is to lose two or three pounds. Most people lose weight in the belly area first when they increase exercise, meaning that heartburn can be reduced quickly by this method.

For a complete list of videos, visit our video library