When Investment Funds Are Allocated by Government Rather Than by Markets

question 34

Multiple Choice

When investment funds are allocated by government rather than by markets,

• A) profitable investments are more likely to take place.
• B) political influence replaces market return as the basis for allocating funds.
• C) funds will consistently be channeled into wealth-creating projects.
• D) projects that are political boondoggles will be unlikely to be undertaken.

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Definitions:

Civil Commitments

A legal process through which an individual with severe mental illness can be court-ordered to receive treatment in a hospital or community-based setting.

Involuntarily

Occurring without one's consent or control.

Dangerousness

The potential to cause harm, injury, or damage to others or oneself.

Mental Illness

A broad range of conditions affecting mood, thinking, and behavior, often associated with distress or problems functioning in social, work, or family activities.