Goods That Have the Properties of Nonexcludability and Nonrival Consumption

question 3

Multiple Choice

Goods that have the properties of nonexcludability and nonrival consumption are called

• A) private goods
• B) public goods
• C) Pigouvian goods

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Definitions:

Rate Variance

Refers to the difference between an actual rate and a standard or expected rate, often used in budgeting and financial analysis to understand variances in performance.

Direct Labor Hours

The total hours of labor directly involved in the manufacturing of a product, directly tied to the production process.

Direct Materials Price Variance

The cost associated with the difference between the actual price and the standard price of direct materials multiplied by the actual quantity of direct materials used in producing a commodity.

Direct Materials

Raw materials that are directly traceable to the manufacturing of a product and constitute a significant portion of the production cost.