A Good Whose Consumption the Public Sector Discourages on Grounds

question 132

Multiple Choice

A good whose consumption the public sector discourages on grounds that individuals don't adequately weigh its costs is a:

• A)private good.
• B)public good.
• C)demerit good.
• D)merit good.

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Definitions:

Fixed Manufacturing Overhead

The sum of all regular, non-variable costs involved in manufacturing, including rent, salaries of permanent staff, and maintenance of equipment.

Absorption Costing

An accounting method that includes all manufacturing costs, such as direct materials, direct labor, and both variable and fixed manufacturing overhead, in the cost of a product.

Unit Product Cost

The total cost associated with producing one unit of product, encompassing both fixed and variable costs.

Operations

Refers to the day-to-day activities involved in the running of a business for the purpose of producing value for the stakeholders.