Suppose That a State Installs a Toll Booth on a Highway

question 118

Multiple Choice

Suppose that a state installs a toll booth on a highway and requires drivers to pay $1.00 before entering the highway. Installation of the toll booth changes

• A) a nonexcludable good into an excludable good.
• B) a nonrival good into a rival good.
• C) public good into a private good.
• D) a nonrival good into a nonexcludable good.

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Definitions:

Salvage Value

The estimated value at sale of an asset following its period of utility.

Book Value

The net value of an asset as recorded on the balance sheet, calculated as the original cost minus accumulated depreciation or amortization.

Salaries Payable

An account that represents the amounts owed to employees for work performed that has not yet been paid.

Salary Expense

The total amount paid by a business to its employees for the work done over a specific period, often monthly or annually.