When a Government Program Is Justified Not on Its Merits

question 5

Multiple Choice

When a government program is justified not on its merits but on the number of jobs it will create,

• A)the program is an efficient use of taxpayer dollars.
• B)it should be approved only if the unemployment rate is low.
• C)taxes should be raised to fund the program.
• D)it is known as the "broken window fallacy."

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Definitions:

Tangible Capital Assets

Physical assets owned by a business that are used in its operation and have a useful life longer than one fiscal year, such as buildings and machinery.

PSAB

stands for Public Sector Accounting Board, which sets accounting standards for public sector entities in some countries, focusing on transparency and accountability.

Controlled Entities

Entities over which another entity has the power to govern financial and operating policies, typically through ownership of a majority voting interest.

Government Organization

An entity that is part of the government and is responsible for the administration and governance of a specific function or area.