Which of the Following Is NOT a Reason Social Returns

question 23

Multiple Choice

Which of the following is NOT a reason social returns might be greater than private returns?

• A)Excess competition between firms
• B)Knowledge spillovers
• C)Spillovers from research and development
• D)Capital market imperfections

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Definitions:

Principal Value

The original sum of money invested or loaned, before interest or any profit earned.

Note Receivable

An asset on the balance sheet representing money owed to the holder by a debtor, which includes an obligation to pay both the principal and interest.

Dishonoured

Refers to a financial instrument, such as a check or a bill, that is not paid upon presentation for settlement.