On Hot Summer Days, Electricity-Generating Capacity Is Sometimes Stretched to the Limit

question 96

Multiple Choice

On hot summer days, electricity-generating capacity is sometimes stretched to the limit. At these times, electric companies may ask people to voluntarily cut back on their use of electricity. On these days, electricity is

• A)excludable, but nonrival in consumption.
• B)not excludable, but rival in consumption.
• C)excludable and rival in consumption.
• D)not excludable and nonrival in consumption.

---

Definitions:

Credit Terms

Conditions under which credit is extended by a lender to a borrower, including repayment timelines, interest rates, and penalties for late payments.

Net 30

A trade credit term indicating that payment in full is expected within 30 days after the invoice date or goods are received.

Cost of Goods Sold

The direct costs attributable to the production of the goods sold by a company, including material and labor expenses.

Preferred Stock

Equity shares that give investors a claim on a company's earnings before dividends are paid to common stockholders, often with no voting rights.