On Hot Summer Days, Electricity-Generating Capacity Is Sometimes Stretched to the Limit

question 96

Multiple Choice

On hot summer days, electricity-generating capacity is sometimes stretched to the limit. At these times, electric companies may ask people to voluntarily cut back on their use of electricity. On these days, electricity is

• A)excludable, but nonrival in consumption.
• B)not excludable, but rival in consumption.
• C)excludable and rival in consumption.
• D)not excludable and nonrival in consumption.

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Definitions:

Cleanup Loan

A short-term loan used to clear outstanding debts, often as a way to improve financial metrics before seeking longer-term financing.

Bankers' Acceptance

A short-term debt instrument issued by a company but guaranteed by a bank, commonly used in international trade to facilitate transactions.

Letter of Credit

A document issued by a bank guaranteeing a buyer's payment to a seller within a specific timeframe and for a specific amount.

Cash Balances

The amount of cash or cash equivalents that a company or individual holds at a given time.