Which of the Following Statements Is (Are) TRUE

question 86

Multiple Choice

Which of the following statements is (are) TRUE?
I. A club good, such as golf, is nonexcludable and rival.
II. A private good is excludable and rival.
III. School is a public good.
IV. Common resources are excludable and nonrival.

• A) I and II
• B) II, III, and IV
• C) II
• D) II and IV

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Definitions:

Du Pont Equation

A formula that breaks down the components of a company's return on equity into three parts: operating efficiency, asset use efficiency, and financial leverage.

ROE

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

Sales

The total amount of goods or services sold by a company, a primary source of revenue for businesses.

Net Income

The profit of a company after all expenses, taxes, and deductions have been subtracted from total revenue.