The Government Should Provide an Additional Unit of a Public

question 106

Multiple Choice

The government should provide an additional unit of a public good if ________.

• A) the marginal cost of providing the additional unit of the good equals the social cost of providing the additional unit
• B) the marginal cost of providing the additional unit of the good exceeds the marginal benefit
• C) the marginal benefit exceeds the marginal cost of providing the additional unit of the good
• D) the marginal cost of providing the additional unit of the good exceeds the average cost of providing the additional unit

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Definitions:

Segregation of Duties

A principle in accounting and corporate governance that aims to reduce the risk of error and fraud by dividing responsibilities among different individuals or departments.

Accounts Receivable

Financial obligations of clients or customers towards a business for received goods or services that are awaiting payment.

Subsidiary Ledger

A subsidiary ledger is a group of similar accounts whose totals summarize into a single amount shown in the general ledger, aiding detailed financial analysis and tracking.

Fraud Triangle

The fraud triangle is a model that explains the factors that lead individuals to commit fraud: pressure, opportunity, and rationalization.