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QUESTION 28 Which of the following is not a pure public good. uncongested highway OB. National defense O C public school OD.Clean atmosphere QUESTION 29 A firm will spend money on a particular investment project when. 0 A, the anticipated rate of return on investment is less than the interest rate. OB. the expected rate returns on investment is greater than the interest rate C the interest rate is greater than the return. D the investment project is good for the country
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28. C. Public School

They are not pure public goods because after a certain point public schools become excludable. Due to the limitation of the available seats in a school not each and every student who seek admission in the school can be admitted. Thus public schools are not always non-rivalry and non-excludable.

29. B. The expected rate of return is greater than the interest rate.

The interest rate is the rate which the firm will pay on its loan, hence in order to generate profit from the investment the rate of return earned by the firm has to be greater than the interest rate it is paying on the loans it has taken for the investment.

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