Which One of the Following Statements Is Correct

question 164

Multiple Choice

Which one of the following statements is correct?

• A) Policymakers have good intentions and therefore their proposals will create good outcomes.
• B) Potential secondary effects do not need to be considered when deciding whether to implement a new government program.
• C) A good outcome is guaranteed from a government program if it is created with good intentions.
• D) Government programs can be implemented with good intentions but can lead to undesirable outcomes because of unintended consequences.

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Definitions:

Depreciation Expense

The allocation of an asset's cost over its useful life, representing the wear and tear, deterioration, or obsolescence of the asset.

Cash Flows

The total amount of money being transferred into and out of a business, particularly in terms of liquidity and financial planning.

Noncash Asset

Assets that cannot be easily converted into cash, such as buildings, equipment, and inventory.

Long-term Debt

Borrowings and financial obligations that are due to be repaid over a period longer than one year.