When a Good Is Rival in Consumption

question 229

Multiple Choice

When a good is rival in consumption,

• A) one person's use of the good diminishes another person's ability to use it.
• B) people can be prevented from using the good.
• C) no more than one person can use the good at the same time.
• D) everyone will be excluded from obtaining the good.

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Definitions:

Cash Balance

is the amount of liquid funds that a company or individual possesses at any given time, available for immediate use.

Receivables

Financial obligations of customers to a company for merchandise or services already supplied or consumed, but for which payment is still outstanding.

Taxes

Mandatory financial charges or levies imposed by a government on individuals, corporations, and other entities to fund government spending and various public expenditures.

Minimum Cash Balance

The least amount of cash a company maintains on hand to meet immediate operational expenses.