Which One of the Following Statements Is Correct

question 164

Multiple Choice

Which one of the following statements is correct?

• A) Policymakers have good intentions and therefore their proposals will create good outcomes.
• B) Potential secondary effects do not need to be considered when deciding whether to implement a new government program.
• C) A good outcome is guaranteed from a government program if it is created with good intentions.
• D) Government programs can be implemented with good intentions but can lead to undesirable outcomes because of unintended consequences.

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Definitions:

Social Overhead Capital

Basic infrastructure projects such as roads, power generation, and irrigation systems.

Developing Country

A nation with a lower level of material wealth, industrialization, and human development index compared to developed countries.

Free-Rider Problem

A problem intrinsic to public goods: Because people can enjoy the benefits of public goods whether or not they pay for them, they are usually unwilling to pay for them.

Remittances

Money sent by workers to people (usually family members) in their country of origin.