Music Spreads Easily and Cheaply on Computer Networks

question 153

Multiple Choice

Music spreads easily and cheaply on computer networks. As a result, music has become more like:

• A) a private good.
• B) a public good.
• C) a merit good.
• D) an inferior good.

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Definitions:

Acid-Test Ratio

A financial ratio indicating a firm's capacity to settle short-term debts without having to sell its stock.

Marketable Securities

Financial instruments that can be easily converted to cash, such as stocks, bonds, and Treasury bills.

Earnings Per Share

A metric used to measure a company’s profitability, calculated as the company's net profit divided by the number of outstanding shares.

Net Income

The total profit of a company after all expenses, including taxes and operating costs, have been subtracted from total revenues.