When the Government Is Heavily Involved in Projects That Provide

question 21

Multiple Choice

When the government is heavily involved in projects that provide benefits to some businesses at the expense of others, this will increase the incentive of businesses to

• A) develop better products in order to satisfy consumers.
• B) invest in projects that increase the value of the resources.
• C) spend more time lobbying and seeking government favors.
• D) spend less time lobbying and seeking government favors.

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Definitions:

Agent's Act

Refers to actions taken by an agent on behalf of a principal, where the agent has the authority to affect the principal's legal position.

Principal's Conduct

Actions or behaviors of a principal (party who has authorized an agent to act on their behalf) that can affect the principal's legal rights and liabilities.

Express Ratification

The explicit approval or confirmation of an act or contract by all parties involved, often necessary for the act's validity.

Manifests Assent

The demonstration of agreement to the terms of a contract, often through an overt action or explicit consent.