Which of the Following Is TRUE About Public Goods

question 83

Multiple Choice

Which of the following is TRUE about public goods?

• A) Consumption is rival and nonexcludable.
• B) Consumption is nonrival and excludable.
• C) Efficient provision occurs at the level of output at which total benefit is equal to total cost.
• D) Unregulated private markets produce less than the efficient quantity of a public good.

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Definitions:

Direct Labor Hour

A metric that quantifies the amount of time a worker spends producing goods or providing services that are directly associated with the cost of manufacturing a product or delivering a service.

Fixed Overhead

Regular, ongoing business expenses that do not vary with the level of production or sales activities, such as rent, salaries, and insurance.

Budgeted Overhead

The total planned or forecasted costs of running operations that are not directly tied to product production, including utilities, rent, and salaries.

Allocated

The process of assigning or distributing resources or costs to various departments or accounts based on a specific criterion.