A Private Good Possesses the Characteristics of Being

question 31

Multiple Choice

A private good possesses the characteristics of being

• A) rival but nonexcludable.
• B) rival and excludable.
• C) nonrival but excludable.
• D) nonrival and nonexcludable.
• E) rival or excludable,but not both.

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Definitions:

Annual Cost Savings

The reduction in total expenses achieved during a fiscal year, often as a result of efficiency improvements, renegotiating contracts, or eliminating waste.

Pretax Return

The profit a company generates before taxes are deducted.

Profitability Index

An economic instrument that evaluates the comparative profitability of an investment by dividing the current value of forthcoming cash flows by the initial cost of investment.

Cash Inflows

The total amount of money being transferred into a business, often from operations, financing, or investing activities; critical for assessing a company's liquidity and financial health.