For Activities in Which the Benefits Are Concentrated and the Costs

question 200

Multiple Choice

For activities in which the benefits are concentrated and the costs widespread, governments are likely to undertake

• A) too little of these activities relative to what would be efficient.
• B) too much of these activities relative to what would be efficient.
• C) exactly the amount of these activities that would be efficient.
• D) none of these activities.

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Definitions:

Persons

Human beings as individuals or considered collectively, especially in a legal or formal context.

Capital Account

An account used to track the investments made into a company by its owners, plus the retained earnings of the business.

Withdrawal Account

An account used in partnership accounting to record the amounts drawn out of the business by the partners for personal use.

Relative Ease

The level of simplicity or difficulty with which a task can be completed when compared to other tasks.