Which of the Following Provides the Most Accurate Explanation of What

question 118

Multiple Choice

Which of the following provides the most accurate explanation of what is meant by "government failure"?

• A) The government engages in an activity such as the setting of prices that interferes with competitive markets.
• B) The situation where the structure of incentives is such that government action will tend to result in the inefficient use of resources.
• C) The presence of widespread voter fraud that alters the outcome of elections.
• D) The undertaking of unethical and corrupt actions by some political officials.

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Definitions:

Pledge of Inventory

The use of a company's inventory as collateral to secure a loan or meet other financial obligations.

Factoring

A financial transaction where a business sells its accounts receivable to a third party at a discount to raise immediate capital.

Turning Receivables

Involves managing and collecting funds owed to a business by its customers within a given period.

Credit Profile

A summary or analysis of an individual's or entity's credit history and current financial status used by lenders to gauge creditworthiness.