A Public Good Is a Good

question 22

Multiple Choice

A public good is a good:

• A)that is produced by a government agency.
• B)that, when it is consumed by one decision maker, affects other decision makers in a way not reflected in the market price.
• C)that, when it is consumed by one decision maker, does not reduce the quantity that may be consumed by other decision makers and to which all consumers have access.
• D)that is free.

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Definitions:

Outstanding Checks

Checks that have been written and recorded in accounting books but have not yet been cashed or cleared by the bank.

Bank Statement

A summary of all transactions mailed to the depositor or made available online by the bank each month.

Petty Cash System

A method used by businesses to manage small, daily expenses, involving a small store of cash on hand.

Cash Payments

Financial activities that result in the spending of cash to fulfill debts or acquire products and services.