Government Provision of Goods and Services That Cannot Easily Be

question 132

Multiple Choice

Government provision of goods and services that cannot easily be provided through markets because it is difficult to establish a one-to-one link between payment and consumption of the good is referred to as the

• A) productive function of government.
• B) protective function of government.
• C) construction function of government.
• D) income redistribution function of government.

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Definitions:

Weighted Average Cost of Capital

A calculation of a firm's cost of capital in which each category of capital is proportionately weighted, used to assess the cost of funding new projects.

Taxable Income

The portion of an individual's or company's income used to determine how much tax will be owed to the federal, state, and/or municipal governments.

Shareholders

Individuals or entities that own shares in a company, giving them ownership interest.

Tax Liability

The total amount of taxes owed by an individual, corporation, or other entity to the government within a given tax period.