A Public Good Is One That Is Generally Available for Consumption

question 126

True/False

A public good is one that is generally available for consumption by the public;that is,a person does not have to be a member of a special group or a club to be able to consume it.A good example would be milk for sale in a grocery store that is open to the public.

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Definitions:

Net Present Value

A financial metric that calculates the difference between the present value of cash inflows and the present value of cash outflows over a period of time.

Net Working Capital

The difference between a company's current assets and its current liabilities, indicating the liquidity and short-term financial health of the business.

After-tax Cash Inflow

The net amount of cash that remains after all tax obligations have been subtracted from total revenue.

NPV

Net Present Value; a method used in capital budgeting to analyze the profitability of an investment or project.