Which of the Following Is True

question 39

Multiple Choice

Which of the following is true?
i.A common resource is a resource that is nonrival and nonexcludable.
ii.Issuing individual transferable quotas (ITQ) means that for users of common resources,the marginal cost plus the price of the ITQ equals the marginal social cost.
iii.In an unregulated market,a common resource is used to the point at which marginal private benefit equals marginal cost.

• A) only i
• B) only ii
• C) only iii
• D) i and ii
• E) ii and iii

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Definitions:

Cash Collected

The total amount of money received by a company from its various sources during a particular period, including sales, investments, and financing activities.

Cash Equivalents

Short-term investments with original maturities of three months or less that are readily convertible to cash and whose value is unlikely to change.

Highly Liquid

Assets that can be easily converted into cash with minimal impact on their value.