A Private Good Is

question 120

Multiple Choice

A private good is

• A) nonexcludable and nonrival.
• B) excludable and rival.
• C) excludable and nonrival.
• D) nonrival and excludable.
• E) subject to the free-riding problem.

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Definitions:

Corporation

A legal entity that is separate from its owners, providing limited liability protection to its shareholders and having the ability to raise capital by selling shares.

Held

Usually refers to assets or investments retained over a period, not sold or traded.

Capital Surplus

The amount by which a company's total capital exceeds the par value of its issued share capital.

Paid-in Capital

Funds raised by a company through the sale of common or preferred stock.