Which of the Following Factors Weakens the Case for Government

question 38

Multiple Choice

Which of the following factors weakens the case for government provision of goods and services relative to private-sector provision?

• A) monopoly
• B) externalities
• C) public goods
• D) the special-interest effect

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Definitions:

Business Borrowing

The act of obtaining funds from lenders or financial institutions by businesses to finance operations, growth, or investments.

Decreases the Money Supply

A monetary policy action that reduces the total amount of money available in the banking system, often aiming to control inflation.

Gross Domestic Product

The total value of all goods and services produced over a specific time period within a country's borders.

Allocative Efficiency

an optimal distribution of resources in an economy, ensuring that goods and services are distributed according to consumer preferences.