Public Goods Are Difficult to Provide in the Private Market

question 160

Multiple Choice

Public goods are difficult to provide in the private market because they have the characteristics of

• A) rivalry and exclusivity.
• B) nonrivalry and nonexclusivity.
• C) rivalry and nonexclusivity.
• D) nonrivalry and exclusivity.

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Definitions:

Gross Profit

Revenue minus the cost of goods sold (COGS), representing the profit a company makes after deducting the costs associated with making and selling its products.

Discount Period

A set time period during which a discount is available, or the period between the issuance of a bill and its payment due date where a discount may be taken for early payment.

Credit Memo

A document issued by a seller to a buyer, reducing the amount the buyer owes to the seller under the terms of an existing invoice.

Sold Merchandise

Refers to the goods or products that a company has sold to its customers as part of its ordinary business operations.