When the Government Pays Part of My University Education, It

question 54

Multiple Choice

When the government pays part of my university education, it is

• A) internalizing an external cost.
• B) using taxes to discourage an external cost.
• C) subsidizing an external benefit.
• D) using direct regulation to discourage an external cost.

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Definitions:

Current Asset Section

Part of a company's balance sheet that lists assets likely to be converted into cash within one fiscal year or operating cycle.

Available-for-Sale Security

Financial assets such as stock or bonds that are not classified as held-to-maturity or trading securities and can be sold in the marketplace.

Fair Value

A reasonable estimate of the price for goods, services, or assets if sold in the market under current conditions.

Unrealized Loss Account

A financial account that tracks the losses on investments or assets not yet sold, representing a decrease in value.