On Hot Summer Days, Electricity-Generating Capacity Is Sometimes Stretched to the Limit

question 96

Multiple Choice

On hot summer days, electricity-generating capacity is sometimes stretched to the limit. At these times, electric companies may ask people to voluntarily cut back on their use of electricity. On these days, electricity is

• A)excludable, but nonrival in consumption.
• B)not excludable, but rival in consumption.
• C)excludable and rival in consumption.
• D)not excludable and nonrival in consumption.

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Definitions:

Unadjusted Balance

The initial balance of an account before any adjustments for interest, payments, or discrepancies have been made.

Accounts Receivable Assigned

Refers to the process where a company uses its accounts receivable as collateral for a loan, effectively assigning the rights to collect those receivables to the lender.

Risk of Ownership

This refers to the potential for loss or damages an owner can face while holding onto an asset or property.

Finance Company

A business that makes loans to individuals and commercial customers, distinct from banks and other traditional financial institutions.