Some Economists Advocate Government Intervention in a Market Economy

question 104

Multiple Choice

Some economists advocate government intervention in a market economy

• A) to produce collective goods and services.
• B) when resource costs for a private producer do not reflect the full cost to society.
• C) to stabilize the economy.
• D) all of the above.

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Definitions:

Lease

A contractual arrangement calling for the lessee (user) to pay the lessor (owner) for use of an asset for a specified period of time.

Financial Lease

A lease agreement where the lessee assumes some of the risks and benefits of ownership.

Sale and Leaseback

A financial transaction where an entity sells an asset and then leases it back from the buyer, typically to free up capital while retaining asset use.

Lessor

The owner of an asset that leases it to another party, known as the lessee, in exchange for periodic rental payments.