Which of the Following Statements Might Be Used by an Economist

question 12

Multiple Choice

Which of the following statements might be used by an economist to argue that the government, rather than the market, should finance the provision of certain economic goods and services?

• A) Decision makers in the market sector are motivated by self-interest, whereas political decision makers are primarily motivated by altruism (the desire to help others).
• B) Public goods tend to be undersupplied by private business because of nonpaying consumers; the government can use taxes to overcome this problem of non-payment.
• C) When the government provides economic goods, they are free; costs are incurred when such goods are provided by private firms.
• D) Voters tend to be better informed than market consumers are.

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Definitions:

Dissociation

The process by which a member of a partnership or an entity withdraws or is removed from the entity, causing changes in the entity's structure or operations.

Partnership Term

The duration for which a partnership agreement is set to exist, which can be indefinite or fixed, as specified in the partnership agreement.

Partnership Obligations

The duties and responsibilities that partners within a business partnership must fulfill, which may include contributing capital, sharing in profits and losses, and acting in the partnership’s best interest.

Assumed Liability

Liability that a party takes on voluntarily from another party, often seen in business acquisitions where the buyer takes on liabilities of the seller.