For Government to Correct for the Failure of Market Outcome

question 50

Multiple Choice

For government to correct for the failure of market outcome, it must do all of the following except:

• A) recognize the problem.
• B) act only if the marginal costs exceed the marginal benefits.
• C) have the will to do something positive about the problem.
• D) have the ability to do something positive about the problem.

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Definitions:

Temporary Accounts

Accounts that are closed at the end of each accounting period, including revenue, expense, and withdrawal accounts, used to track transactions for a particular period.