A Good Is Rivalrous in Consumption If

question 138

Multiple Choice

A good is rivalrous in consumption if

• A)its consumption by one person reduces its consumption by others.
• B)it can be used to satisfy many needs (as compared to just one need).
• C)it can be used to satisfy many wants (as compared to just one want).
• D)its consumption by one person increases its consumption by others.

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Definitions:

Partnership Interest

An ownership share in a partnership that represents a partner's stake in the profits, losses, and assets of the partnership.

Like-kind Exchange

A tax deferment strategy allowing for the exchange of similar types of properties without the immediate tax implications of selling the property.

IRC Section 121

A provision in the Internal Revenue Code that allows for the exclusion of up to $250,000 ($500,000 for married couples filing jointly) of capital gains from the sale of a primary residence.

Principal Residence

The primary location that a person inhabits. It often qualifies for specific tax benefits, such as the exclusion of gain from its sale.