A Government That Has the Power to Make and Enforce

question 66

Multiple Choice

A government that has the power to make and enforce law but which lacks the acceptance of the people is said to have

• A) authority but not legitimacy.
• B) legitimacy but not authority.
• C) both authority and legitimacy.
• D) a democratic form of government.
• E) an authoritarian form of government.

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Definitions:

Implicit Costs

The opportunity costs of using resources owned by the firm for its own production instead of selling or renting them to others.

Interest Rate

The price, calculated as a percentage of the amount borrowed, that a lender charges a borrower for the use of their savings for one year.

Salary

A fixed regular payment, typically paid on a monthly or biweekly basis but often expressed as an annual sum, made by an employer to an employee.

Explicit Cost

Direct payment made to others in the course of running a business, such as wages, rent, and materials.