Public Goods Are Not Sold in Efficient Quantities in the Marketplace

question 145

Multiple Choice

Public goods are not sold in efficient quantities in the marketplace because:

• A) once supplied to a buyer, they are made available at no cost to someone else.
• B) the more one person has, the less another person has.
• C) they are usually so costly that only the wealthy can afford them.
• D) of none of the above.

Identify shipping and credit terms in merchandising transactions.

Distinguish between multiple-step and single-step income statements and their presentation of expenses.

Understand the periodic inventory system and how it records transactions.

Calculate cost of goods sold under a periodic inventory system.

---

Definitions:

Rising Costs

An economic situation where the prices of goods, services, or factors of production increase over time.

FIFO Method

"First In, First Out," an inventory valuation method where goods purchased or produced first are sold or consumed first.

Inventory Costing Methods

The techniques used to value and account for inventory, including first-in-first-out (FIFO), last-in-first-out (LIFO), and weighted average cost methods.

Perpetual System

An inventory management method where inventory quantities and cost of goods sold are updated continuously with each sale or purchase.