An Example of a Public Good That Is Difficult to Make

question 23

Multiple Choice

An example of a public good that is difficult to make excludable is:

• A) sewer systems.
• B) fire protection.
• C) national defense.
• D) All of these are nonexcludable public goods.

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Definitions:

Intercompany Sales

Transactions involving the exchange of goods or services between subsidiaries within the same parent company.

Mark-Up

The amount added to the cost price of goods to cover overhead and profit, resulting in the selling price.

Effective Tax Rate

The true percentage of earnings that a person or business pays to the government, determined by dividing their total tax contribution by their taxable income.

Consolidated Statements

Consolidated Statements are financial reports that aggregate the financial position and operating results of a parent company and its subsidiaries, presenting them as a single entity.