Which of the Following Is an Example of a Public

question 144

Multiple Choice

Which of the following is an example of a public good?

• A) electricity generated by a city-owned public utility
• B) a city-owned bus
• C) national defence
• D) telephone service

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Definitions:

Dividend

A portion of a company's earnings that is paid to shareholders, typically on a quarterly basis.

NPV Projects

Projects evaluated based on Net Present Value, a method to assess the profitability of investments by discounting future cash flows.

Excess Cash

The amount of cash held by a company that exceeds what is needed for day-to-day operations and short-term obligations.

Earnings Per Share

A financial metric that measures the amount of net income earned per share of stock outstanding.