There Is Substantial Agreement Among Scholars That at Least Two

question 117

Multiple Choice

There is substantial agreement among scholars that at least two functions of government are legitimate. These two functions are the

• A) protection of the rights of individuals to their person and property and the provision of goods that cannot easily be provided through markets.
• B) redistribution of income from some individuals to others and the waging of war to expand the nation's territory.
• C) production of postal services and cable television.
• D) taxation of goods that are generally considered immoral or bad and the regulation of large corporations.

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Definitions:

Break-even Sales

The amount of revenue needed to cover all fixed and variable costs, resulting in no profit or loss.

Variable Cost

Costs that change in proportion to the level of production or sales activity, such as raw materials and direct labor costs.

Fixed Costs

Fixed overheads that stay the same no matter how much is produced or sold, including rental fees or staff salaries.

Margin of Safety

The difference between actual or projected sales and the break-even point, indicating the amount by which sales can drop before a business incurs a loss.