Which of the Following Is a Predictable Side Effect of Increased

question 49

Multiple Choice

Which of the following is a predictable side effect of increased government activity (for example, taxes and subsidies) designed to redistribute income among citizens?

• A) improvement in the operational efficiency of government agencies
• B) budget surpluses
• C) reduction in the poverty rate
• D) an increase in rent-seeking activity

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Definitions:

Malpractice Insurance

A type of professional liability insurance that provides coverage to healthcare professionals for claims arising from allegations of medical errors or negligence.

Existing Risk

Refers to the current risks involved in a situation or transaction, especially those that have already been identified or assessed.

Valid Contract

A legally binding agreement that meets all required elements, including offer, acceptance, consideration, and mutual consent.

Losses

The negative financial impact resulting from the difference between costs and revenues, often attributed to business operations, investments, or unforeseen events.