Resources Tend to Be Allocated Inefficiently When Goods

question 46

Multiple Choice

Resources tend to be allocated inefficiently when goods

• A)are private goods.
• B)are rival in consumption and excludable.
• C)are available free of charge.
• D)are available only at very high prices.

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Definitions:

Journal

A detailed record where all financial transactions of a business are initially recorded before being transferred to accounts in the general ledger.

Ledger

A comprehensive collection of all the accounts of a business, where transactions are recorded in a structured and detailed manner.

Income Statement

A financial statement that shows a company's revenue and expenses over a specific period, usually resulting in a net profit or loss.

Retained Earnings

The portion of net earnings not distributed to shareholders as dividends but retained by the company to be reinvested in its core business or to pay debt.