Classifying a Good as Excludable Means

question 64

Multiple Choice

Classifying a good as excludable means

• A)that someone can be barred from consuming the good based on race, creed, or some other irrelevant characteristic.
• B)that anyone who does not pay for the good cannot consume it.
• C)that consumption of the good causes no externalities.
• D)that a producer with patent or copyright protection can exclude any other producer from selling his product.

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Definitions:

Cash Expense

Expenses that require immediate outlay of cash during an accounting period.

Depreciation

The reduction in the value of an asset over time, usually due to wear and tear or obsolescence.

Net Working Capital

The difference between a company's current assets and current liabilities, indicative of its short-term financial health and operational efficiency.

Operating Cash Flows

The cash generated from the normal operations of a business, reflecting its ability to generate sufficient revenue to maintain and grow operations.