A Lighthouse Is Typically Considered to Be a Public Good

question 90

Multiple Choice

A lighthouse is typically considered to be a public good because

• A)the owner of the lighthouse is able to exclude beneficiaries from enjoying the lighthouse.
• B)there is rarely another lighthouse nearby to provide competition.
• C)a nearby port authority cannot avoid paying fees to the lighthouse owner.
• D)all passing ships are able to enjoy the benefits of the lighthouse without paying.

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Definitions:

Working Capital

Working capital is the difference between a company's current assets and current liabilities, indicating its short-term financial health and operational efficiency.

Long-Term Liquidity

Measures a company's ability to meet its long-term financial obligations, indicating financial health over a prolonged period.

Contingent Liability

A potential financial obligation that may occur in the future, depending on the outcome of a specific event.

Financial Statements

Reports that provide an overview of a company's financial condition, including the balance sheet, income statement, and cash flow statement.