Which of the Following Factors Weakens the Case for Government

question 38

Multiple Choice

Which of the following factors weakens the case for government provision of goods and services relative to private-sector provision?

• A) monopoly
• B) externalities
• C) public goods
• D) the special-interest effect

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Definitions:

Liabilities

Financial obligations or debts that a company owes to external parties or creditors.

Cash Dividend

A cash dividend is a payment made by a company out of its earnings to shareholders in the form of cash.

Financial Position

A snapshot of the resources a company controls and its obligations at any given time, indicating its economic standing.

Stock Dividend Distributable

A declaration by a company’s board of directors to issue a dividend in the form of additional shares rather than cash.