Which of These Is NOT a Characteristic of a Public

question 20

Multiple Choice

Which of these is NOT a characteristic of a public good?

• A) The consumption of the good does not reduce the utility for others who would consume the good.
• B) It is not feasible or practical to exclude potential consumers once the good has been produced.
• C) It is a good, like a park pass, that a government entity sells to those who want the good.
• D) It is a good, like a river levee, that residents of the area may not want to pay to construct.

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Definitions:

Control Environment

The overall attitude of management and employees about the importance of controls.

Internal Control Structure

A set of processes and procedures implemented by a company to ensure the integrity of financial and accounting information, promote accountability, and prevent fraud.

Recording Transactions

The systematic process of documenting financial transactions in the accounting records of a business.

Accounting System

The methods and procedures used by a business to collect, classify, summarize, and report financial data for use by management and external users.