Which of the Following Statements Is True About the Difference

question 105

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:

Deferred Tax Asset

An accounting term for taxes that have been accrued but not yet paid, potentially reducing future tax obligations.

Impairment Loss

A reduction in the recoverable amount of a fixed asset or goodwill below its carrying amount, recognized as an expense.

Value in Use

The present value of future cash flows expected to be derived from an asset, indicating its utility to the owner.

Straight Line

A method of calculating depreciation and amortization that evenly spreads the cost of an asset over its useful life.