Which of the Following Statements Is TRUE About the Difference

question 242

Multiple Choice

Which of the following statements is TRUE about the difference between a public and private good?

• A) Both public and private goods are owned by individuals but public goods can be shared while private goods cannot be shared.
• B) The government produces private goods while corporations produce public goods.
• C) Consumption of a private good by one person reduces the amount available for others while the consumption of a public good does not reduce the amount available for others.
• D) Resources are used to produce private goods but are not used to produce public goods.

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Definitions:

Economic Income

An individual's total earnings, including wages, salaries, investments, and other sources, assessed for economic analysis.

Capital Gains

The profit earned from the sale of an asset or investment which has increased in value over the holding period.

Double Taxation

The imposition of two or more taxes on the same income, asset, or financial transaction.

Income Tax

Income tax is a tax levied by governments on individuals or entities based on their income or profits, with rates varying according to income levels.