The Major Distinction Between Private and Public Goods Is That

question 25

Multiple Choice

The major distinction between private and public goods is that

• A) private goods are goods produced by private firms whereas public goods are goods produced by government--the public sector.
• B) unlike private goods, public goods are nonexcludable--it is difficult or impossible to prevent nonpaying customers from receiving the good.
• C) unlike private goods, public goods are nonrival in consumption--the consumption of a unit by one person does not detract from the amount available to others.
• D) both b and c are correct.

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Definitions:

Net Pay

The amount of money that an employee receives after deductions such as taxes and social security contributions have been subtracted from their gross salary.

Overtime

Additional hours worked beyond the standard or agreed working hours, typically compensated at a higher pay rate.

Employment Agency

An organization that matches employers with job seekers.

Weekly

Once per week.