There Are Apartments in Chicago Whose Rooftops Overlook Wrigley Field

question 137

Multiple Choice

There are apartments in Chicago whose rooftops overlook Wrigley Field. On game day you can find free riders on the roof enjoying ____.

• A) free property rights
• B) an externality
• C) a public good
• D) excess utility

---

Definitions:

Direct Materials Price Variance

The difference between the actual cost of direct materials used in production and the expected (standard) cost, which indicates how efficiently materials are purchased.

Direct Materials

Raw materials that are directly incorporated into a finished product and can be directly assigned to the product.

Standard Costs

Predetermined cost estimates used to measure the cost performance of an operation, allowing for budgeting and variance analysis against actual costs.

Standard Price

A predetermined cost of a resource or product, used for budgeting and cost control purposes.