What Are the Two Features of a Public Good

question 145

Multiple Choice

What are the two features of a public good?

• A) Rival and nonexcludable
• B) Nonrival and excludable
• C) Rival and excludable
• D) Nonrival and nonexcludable

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Definitions:

Useful Life

The estimated duration of time over which an asset is expected to be functional and contribute to a company's operations.

Average Rate of Return

A financial metric that assesses an investment's profitability by dividing the annual average profit by the initial cost of investment.

Capital Investment Proposals

Proposals for projects or investments that require significant amounts of capital, analyzed for potential return and risk.

Cash Payback Methods

A capital budgeting technique that estimates the time needed for an investment to generate cash flows to recover its initial cost.