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

question 31

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.

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Definitions:

Current Ratio

A liquidity measure that assesses a company's ability to pay its short-term obligations with its short-term assets.

Account Payable

An obligation or liability of a company to pay a short-term debt to its creditors or suppliers.

Gross Margin Percentage

The proportion of sales revenue remaining after deducting cost of goods sold, expressed as a percentage of sales revenue.

Net Operating Income

Income before interest and income taxes have been deducted.