Which of the Following Criteria Must Be Met for a Public

question 4

Multiple Choice

Which of the following criteria must be met for a public university to report affiliated organizations as component units?
I.The university is entitled to access those resources
II.The economic resources are significant to the component
III.The economic resources received or held are almost entirely for the direct benefit of the university

• A)I only
• B)I & II only
• C)III only
• D)II only
• E)I, II, & III

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Definitions:

Optimal Consumption

The mix of goods and services that maximizes a consumer's utility given their budget constraints.

Initial Endowment

The initial quantity of goods, services, or resources an individual, institution, or country possesses at the start of an economic analysis.

Relative Prices

The price of one good or service compared to another, indicating their exchange rate in the market.

Normal Good

A type of good for which demand increases when income increases and falls when income decreases, with other factors being constant.