At the Most Basic Level, the Distinguishing Characteristic of Government

question 33

Multiple Choice

At the most basic level, the distinguishing characteristic of government that makes it different from private firms is its ability to

• A) use coercive force against adults to modify their behavior or force them to pay for a good or service.
• B) direct resources in a manner that serves the public interest rather than the private interest of individuals.
• C) produce goods and services that people value.
• D) escape the constraints imposed by scarcity.

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Definitions:

Dividend

A portion of a company's earnings that is paid to shareholders, typically on a quarterly basis, as decided by the board of directors.

Cost Of Capital

The necessary yield a business needs to achieve on investment endeavors to preserve its market capitalization and secure capital.

Discount Rate

The interest rate used to determine the present value of future cash flows or to evaluate the attractiveness of an investment.

Opportunity Cost

The cost of an alternative that must be forgone in order to pursue a certain action, essentially the benefits you could have received by taking another course of action.