Policies and Procedures Enacted by the Entity Which Help Ensure

question 5

Multiple Choice

Policies and procedures enacted by the entity which help ensure that management's directives are carried out are generally referred to as ________.

• A)management activities
• B)control activities
• C)legislative activities
• D)company procedures

---

Definitions:

Marginal Social Cost

The total cost to society of producing an additional unit of a good or service, including both private costs and any externalities.

Nonexcludable

A characteristic of public goods where it is not possible to prevent individuals from using the good or service, regardless of whether they have paid for it.

Free-rider Problem

A situation in which some individuals benefit from resources or services without paying for them, leading to underprovision of those goods or services.

Marginal Private Benefit

The additional benefit received by the consumer or producer from consuming or producing one more unit of a good or service.