If Good X Has Social Demand That Is Less Than

question 64

Multiple Choice

If Good X has social demand that is less than market demand,then Good X must be a

• A)Public good.
• B)Good with an external cost.
• C)Good with an external benefit.
• D)Good suffering from the free-rider problem.

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Definitions:

Finished Goods Inventory

The value of a company's inventory of products that are completed and ready for sale, but have not yet been sold.

Raw Materials Inventory

The total value of all the inputs that are used in the production process but have not yet been transformed into finished products.

Production Budget

An estimate of the total cost of production, including materials, labor, and overhead costs, for a specific period.

Ending Inventory

is the value of goods available for sale at the end of an accounting period, calculated by adding new purchases to the starting inventory, then subtracting the cost of goods sold.