For a Good to Be Efficiently Provided by the Private

question 56

Multiple Choice

For a good to be efficiently provided by the private market, which of the following is essential?

• A)It is rival in consumption.
• B)It is excludable.
• C)It is a common resource.
• D)It is rival in consumption and it is excludable.

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Definitions:

Dividends

Distributions from a company's earnings to its shareholders, typically originating from the firm's profits.

Intrinsic Value

The actual value of a company, asset, or currency determined through fundamental analysis without reference to its market value.

Return

The gain or loss made on an investment over a specified period, typically expressed as a percentage of the investment’s initial cost.

ROE

Return on Equity, a measure of financial performance calculated by dividing net income by shareholders' equity, indicating how effectively a company uses investments to generate earnings growth.