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A Public Good Is One for Which the Cost of Exclusion

question 201

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A public good is one for which the cost of exclusion is prohibitive and for which the marginal cost of provision to another consumer is zero.


Definitions:

Indirect Method

A cash flow statement preparation approach that starts with net income and adjusts for non-cash transactions and changes in working capital.

Marketable Securities

Financial instruments that are easily convertible into cash and may include stocks, bonds, and Treasury bills.

Investing Activities

Transactions involving the acquisition or disposal of long-term assets and investments, as reported in a company's cash flow statement.

Cash Dividends

Payments made by a company out of its profits to its shareholders in the form of cash.

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