Which of the Following Factors Weakens the Case for Private-Sector

question 195

Multiple Choice

Which of the following factors weakens the case for private-sector provision of goods and services relative to public-sector provision?

• A) constitutional rules
• B) the shortsightedness effect
• C) the special-interest effect
• D) public goods

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Definitions:

Decision Making

Selecting a course of action from competing alternatives.

Avoidable Cost

Costs that can be eliminated if a particular decision is made, such as discontinuing a product or service.

Sunk Cost

A cost that has already been incurred and that cannot be changed by any decision made now or in the future.

Consistency

Refers to the accounting principle that mandates the same accounting methods and procedures to be followed from one financial period to another to ensure comparability of financial statements over time.