Which of the Following Is a Key Difference Between the Economic

question 155

Multiple Choice

Which of the following is a key difference between the economic activities of government and those of private firms?

• A) Private firms face the constraint of scarcity; government does not.
• B) Government focuses primarily on equity; private firms focus only on efficiency.
• C) Private economic activities create externalities; government activities do not.
• D) Government has the legal right to force people to do things; private firms do not.

---

Definitions:

Bits

The most basic data element in computer science, which can be a binary digit of 0 or 1.

Byte

A unit of digital information in computing and telecommunications that most commonly consists of eight bits, representing a single character of data.

Manufacturer

A company or individual that produces finished goods from raw materials on a large scale, using labor, machinery, and tools.

Battery

A device consisting of one or more electrochemical cells that convert stored chemical energy into electrical energy, commonly used as a power source in electronic devices.