Which of the Following Is True

question 144

Multiple Choice

Which of the following is true?

• A) All types of environmental problems can be solved simply by the enforcement of individual property rights.
• B) Environmental regulation cannot improve environmental quality.
• C) Regulation nearly always leads to economically efficient outcomes.
• D) Government regulation is subject to the same problems caused by lack of information and lack of incentives for economic efficiency that plagued centrally planned economies.

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Definitions:

Operating Expenses

Costs necessary for a company to conduct its day-to-day business activities, excluding direct production costs.

Stock Investments

Investments in the capital stock of other corporations.

Cash Flows

Describes the movement of money into and out of a business, used to assess the company's liquidity, solvency, and financial flexibility.

Major Categories

Principal or most significant classifications or groups within a system or framework.