Which of the Following Statements Is Correct

question 76

Multiple Choice

Which of the following statements is correct?

• A)Common resources are excludable but nonrival in consumption.
• B)National defense is an example of the Tragedy of the Commons.
• C)When African elephants were privatized, the survival of the species improved.
• D)Well established property rights are unnecessary because government can provide goods more efficiently than private markets.

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Definitions:

Long-Term Debt Ratio

A ratio that compares the amount of long-term debt a company has to its total assets, indicating how much of the company's assets are financed with debt.

Total Debt

The sum of all liabilities, both short and long term, that a company owes to external parties.

Debt/Equity Ratio

An indicator for evaluating a company's use of financial leverage, obtained by dividing the firm's overall liabilities by the equity of its shareholders.