Government Intervention Can Be Productive and Efficiency Enhancing

question 70

Multiple Choice

Government intervention can be productive and efficiency enhancing:

• A)whenever the marginal social benefit is positive.
• B)in markets for common resources.
• C)because the government always acts with altruistic motives.
• D)in all markets except those for public goods.

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Definitions:

Accounting Cycle

The four-step procedure of an accounting system: examining source documents, recording transactions in an accounting journal, posting recorded transactions, and preparing financial statements.

Accounting Cycle

The collective process of recording and processing the accounting events of a company, from when the transaction occurs, to its representation in the financial statements, followed by closing the accounts.