Which of the Following Is a Reason Why Government Is

question 92

Multiple Choice

Which of the following is a reason why government is a participant in a market-oriented economy?

• A)To enforce contracts and protect private property
• B)To promote collusion
• C)To promote the growth of natural monopolies
• D)To provide more inequality in the distribution of income
• E)To promote externalities

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Definitions:

Equity Income

Income that comes from stock dividends or the sale of shares, reflecting earnings from investment in equity securities.

Straight-Line Basis

An accounting method used for calculating depreciation by evenly dividing an asset's value over its expected lifespan.

Goodwill

An intangible asset that represents the excess value of an acquired company over the fair value of its identifiable assets and liabilities, often related to brand reputation or customer relationships.

Common Stock

A type of equity security that represents ownership in a corporation, including voting rights and a share in the company's profits through dividends.