The Economic Way of Thinking Indicates That Government Action Will

question 84

Multiple Choice

The economic way of thinking indicates that government action will

• A)never improve on the allocation of resources through markets.
• B)always improve on the results of markets if the political process is democratic.
• C)reflect the actions of political decision-makers seeking to advance the public interest, rather than their own personal interests.
• D)can either improve the well-being of the general public, or harm it, depending on the circumstances.

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Definitions:

Freight Paid

The cost incurred by a company to transport goods, often recognized as an expense in the income statement.

Operating Expense

Costs associated with the day-to-day operations of a business, excluding the cost of goods sold.

Sales

The total amount of revenue generated by the selling of goods or services.

Sales Invoice

A document issued by a seller to a buyer that lists products or services provided and states the sum due for these.