The Tendency for a Resource That Has No Price to Be

question 106

Multiple Choice

The tendency for a resource that has no price to be used until its marginal benefit falls to zero is referred to as:

• A)a social norm.
• B)a positional arms race.
• C)the Coase theorem.
• D)the tragedy of the commons.

---

Definitions:

Beginning Capital Balance

The beginning capital balance is the amount of capital or equity that a company has at the start of a new accounting period.

General Ledger

A comprehensive set of accounts that records all financial transactions of a business, showing assets, liabilities, equity, revenue, and expenses.

Owner Withdrawals

Money or assets taken out of a business by the owner(s) for personal use.

Owner's Equity

The residual interest in the assets of a company after deducting liabilities, representing the ownership interest of shareholders or owners.