Which of the Following Is an Example of a Public

question 56

Multiple Choice

Which of the following is an example of a public good?

• A)A free lunch provided by a soup kitchen
• B)The clean air resulting from laws reducing pollution
• C)A tariff protecting an important national industry
• D)Electric cars that reduce smog for everyone

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Definitions:

Inventory

Items held by a company awaiting sale or use in production, including raw materials, work-in-progress, and finished goods.

Times Interest Earned

A financial metric that measures a company's ability to meet its debt obligations by comparing its earnings before interest and taxes (EBIT) to its annual interest expense.

Times Interest Earned

A financial ratio that measures a company's ability to meet its interest obligations, calculated by dividing earnings before interest and taxes (EBIT) by interest expense.

Income Tax Expense

The total amount of income tax a company is obligated to pay to tax authorities, calculated based on its taxable income.