Private Goods Are Characterized by

question 81

Multiple Choice

Private goods are characterized by

• A)application of exclusion principle
• B)rivalry in consumption
• C)payment of prices
• D)all the above

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Definitions:

Natural Resources

Natural resources are raw materials that are derived from the environment, such as minerals, forests, water, and fertile land, which can be used for economic gain.

Periodic Inventory System

An inventory system that updates inventory balance and cost of goods sold at the end of an accounting period, not continuously.

Economic Entity Assumption

An accounting principle that states a company and its owner(s) are separate entities for financial reporting purposes.

Expenses

Outflows or other uses of assets or incurrences of liabilities during a period from delivering goods, rendering services, or carrying out other activities.