When Investment Funds Are Allocated by Government Rather Than by Markets

question 34

Multiple Choice

When investment funds are allocated by government rather than by markets,

• A) profitable investments are more likely to take place.
• B) political influence replaces market return as the basis for allocating funds.
• C) funds will consistently be channeled into wealth-creating projects.
• D) projects that are political boondoggles will be unlikely to be undertaken.

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Definitions:

Drug Therapy

The use of prescribed medications to treat or manage medical conditions.

Overprescribed

The practice of issuing more prescriptions for medication than is clinically warranted or necessary.

Side Effects

Unintended, often negative, reactions or outcomes that occur in addition to the desired effect of a medication, treatment, or substance.

Electroconvulsive Shock Therapy

Electroconvulsive Shock Therapy is a psychiatric treatment involving electrically induced seizures to provide relief from severe mental disorders.