Which of the Following Is an Example of a Pure

question 4

Multiple Choice

Which of the following is an example of a pure private good?

• A) national defense
• B) the Florida State Turnpike, a non-congested toll freeway
• C) Lake Erie
• D) the Metropolitan Museum of Art in New York City
• E) the new heat pump your neighbor bought for her house

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Definitions:

Closing Entries

Journal entries made at the end of an accounting period to transfer temporary account balances to permanent accounts, preparing the company's books for the next period.

Net Sales

The sum a company receives from its sales, after accounting for returns, compensations for damaged or missing items, and discount deductions.

Gross Profit

The difference between the revenue from sales and the cost of goods sold, before deducting overheads, interest, and taxes.

Cost of Goods Sold

Cost of goods sold (COGS) is the direct costs attributable to the production of the goods sold by a company, including materials and labor.