The Difference Between Private Goods and Common Resources Is That

question 114

Multiple Choice

The difference between private goods and common resources is that common resources are:

• A) more valuable than private goods.
• B) excludable, and private goods are nonexcludable.
• C) nonexcludable, and private goods are excludable.
• D) nonrival.

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Definitions:

Social Facilitation Theory

Social facilitation theory posits that the presence of others significantly impacts an individual's performance, enhancing it on familiar or simple tasks but potentially impairing it on complex or new tasks.

Earned Income

Income generated from the sale of goods or services by an organization, as distinct from donations or grants.

Liability

A legal responsibility or obligation, often in financial terms, that a person or entity has to another.

Business Risk

The exposure to factors that may cause a business to experience lower profits or financial loss, including market competition, regulatory changes, and operational failures.