Why Are the Public Goods Not Excludable

question 72

Multiple Choice

Why are the public goods not excludable

• A)They may be socially desirable but not privately profitable.
• B)They may be socially desirable and therefore will be provided by both the government and as a private good.
• C)They may be socially desirable and have a lower price so more consumers will be able to afford them.
• D)They may be socially desirable but are still generally taxed by the government.

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Definitions:

Materials Ledger

A record keeping system that tracks the quantities and costs of raw materials used and on hand in the manufacturing process.

General Ledger

A complete record of all financial transactions over the life of a company, serving as the primary source of information for the financial statements.

Receiving Report

A document usually prepared by the receiving department detailing the goods received by a business, which is then used to verify invoices before payment.

Period Costs

Expenses that are not directly tied to the production of goods or services and are expensed within the period they occur.