Public Goods Are Those for Which

question 1

Multiple Choice

Public goods are those for which

• A) individuals who do not pay can be excluded from consuming the good.
• B) individuals who do not pay cannot be excluded from consuming the good.
• C) external costs exist.
• D) no external costs exist.

---

Definitions:

Business Enterprises

Organizations engaged in commercial, industrial, or professional activities, aiming to earn profits.

External Transactions

Transactions that involve parties outside the organization, impacting the financial position of the business.

Economic Events

Transactions and occurrences that affect the financial position of a business entity.

Basic Accounting Equation

Represents the foundation of double-entry bookkeeping, stating that assets equal liabilities plus equity.