A Key Difference Between Incentives for Government and for Business

question 121

Multiple Choice

A key difference between incentives for government and for business is:

• A) government can run a budget deficit while a business cannot.
• B) a business must make a profit to survive while a government need not.
• C) government need not hire its employees from the labor market while a business must.
• D) a business has a credit rating while a government does not.
• E) government must elect its leaders while a publicly traded business does not elect its board members.

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Definitions:

Productivity of Labor

The output per labor hour or worker, indicating how efficiently labor is used in the production of goods and services.

Labor Resource Market

The market in which individuals offer their labor to employers in exchange for wages.

Substitute Input

An alternative resource or material used in the production process that can replace another in response to changes in market conditions or prices.

Tablet-Computer Industry

The sector of the tech industry that designs, manufactures, and sells tablet computers, a type of portable computing device.