Which of the Following Is an Example of a Policy

question 54

Multiple Choice

Which of the following is an example of a policy whose costs are widely distributed but whose benefits are concentrated?

• A) Social Security
• B) investment bank regulations and investigations
• C) air pollution controls
• D) public colleges
• E) tax policy

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Definitions:

Spontaneous Financing

Financing that arises naturally from the operations of a company, such as trade credit that increases as sales grow, without requiring explicit negotiation or arrangements.

Working Capital

The difference between a company's current assets and current liabilities, indicating the short-term liquidity and operational efficiency.

Carrying Costs

Expenses associated with holding or storing inventories, including warehousing, insurance, and spoilage costs.

Cash Inflows

The total amount of money being transferred into a business, often from operations, investments, or financing.