Which of the Following Statements Is True About the Difference

question 105

Multiple Choice

Which of the following statements is true about the difference between a public and private good?

• A) Both public and private goods are owned by individuals but public goods can be shared while private goods cannot be shared.
• B) The government produces private goods while corporations produce public goods.
• C) Consumption of a private good by one person reduces the amount available for others while the consumption of a public good does not reduce the amount available for others.
• D) Resources are used to produce private goods but are not used to produce public goods.

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Definitions:

Dividends

Are the distribution of a portion of a company's earnings, decided by the board of directors, to a class of its shareholders.

Market-capitalization Rate

A valuation metric that assesses the total value of a company's outstanding shares by multiplying the stock price by the total number of shares.

Plowback Ratio

A financial metric indicating the proportion of earnings retained by a company after dividends are paid, used for reinvestment into business operations.

Expected ROE

The projected return on equity for a future period, based on estimates of future earnings and shareholders' equity.