In Cost-Benefit Analysis,regulatory Intervention Can Be Justified If the

question 137

Multiple Choice

In cost-benefit analysis,regulatory intervention can be justified if the

• A)Marginal benefit of regulation exceeds its marginal cost.
• B)Economic cost of regulation exceeds the value of the improvements in government intervention.
• C)Value of government failure exceeds the value of market failure.
• D)Intervention improves market outcomes,regardless of costs.

---

Definitions:

Par Value

The face value of a bond or stock, representing the amount that will be returned to the holder at maturity, often used as a legal face value for stocks.

Installment Note

A debt instrument that requires a series of periodic payments of both principal and interest until the debt is paid in full.

Journal Entry

A record in the books of accounts that documents a financial transaction, showing the debit and credit effects.

Interest Expense

Costs incurred by an entity for borrowed funds, which are typically reported on the income statement within the financing or operating sections.