The Best Example of a Public Good, Produced by the Government

question 134

Multiple Choice

The best example of a public good, produced by the government and for which exclusion is not possible, is:

• A) legal services.
• B) national defense.
• C) a municipal library.
• D) cable television broadcasting.

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Definitions:

Profit Margin

A financial performance ratio that shows the percentage of profit a company makes for each dollar of sales.

Gross Margin

The difference between sales revenue and the cost of goods sold, expressed as a percentage of sales revenue.

Sales

The activities involved in selling products or services in return for money or other compensation.

Residual Income

The amount of income that an entity has after all personal debts and expenses have been paid, often used in personal finance, or an approach to measure a department's or investment's profitability after charging cost of capital.