If the Consumption of a Good by One Individual Does

question 27

Multiple Choice

If the consumption of a good by one individual does not change the amount of the good available to others, the good is considered to be

• A) durable.
• B) nonrival-in-consumption.
• C) a common good.
• D) a natural resource.

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Definitions:

Net Income

The amount of earnings left after all expenses, taxes, and costs have been subtracted from total revenue.

FMV

Fair Market Value, an estimate of the market value of a property or asset, based on what a knowledgeable, willing, and unpressured buyer would likely pay to a knowledgeable, willing, and unpressured seller in the market.

Tax Depreciation

The deduction of a portion of the cost of a business asset from taxable income over the asset's useful life, as allowed by tax laws.

Taxable Income

The amount of income used to calculate how much tax an individual or a company owes to the government, after all deductions and exemptions.