When Government Policies Are Enacted

question 159

Multiple Choice

When government policies are enacted,

• A)equity can usually be enhanced without an efficiency loss, but efficiency can never be enhanced without an equity loss.
• B)efficiency can usually be enhanced without an equity loss, but equity can never be enhanced without an efficiency loss.
• C)it is always the case that either efficiency and fairness are both enhanced, or efficiency and equity are both diminished.
• D)None of the above are correct.

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Definitions:

Budgetary Slack

The practice of underestimating revenue or overestimating expenses to make budget targets more easily attainable.

Window Dress

Window Dressing is a financial strategy used by companies to improve the appearance of their financial statements or investment portfolio, often at the end of an accounting period.

Sales Staff

Employees responsible for the sale of products or services, pivotal in achieving business revenue targets and maintaining customer relationships.

Budgeted Sales

Projected sales revenue a company plans to achieve in a certain period, often used for planning purposes.