The Economic Functions of Government Include

question 151

Multiple Choice

The economic functions of government include

• A) determining prices.
• B) setting wages in the public sector.
• C) protecting property rights.
• D) welfare.

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Definitions:

Catfish

A diverse group of ray-finned fish known for their prominent barbels, which resemble a cat's whiskers.

Industrial Regulation

Oversight and rules established by government agencies to govern how businesses can operate in certain industries to promote fair practices and competition.

X-inefficiency

A situation where a firm operates with higher than necessary costs due to a lack of competition or other inefficiencies, not achieving maximum productivity.

Principal-agent Problems

Conflicts of interest and challenges in monitoring that arise in relationships where one party (the agent) is supposed to act in the best interest of another (the principal).