When Government Policies Are Enacted

question 47

Multiple Choice

When government policies are enacted,

• A)equality can usually be enhanced without an efficiency loss,but efficiency can never be enhanced without a reduction in equality.
• B)efficiency can usually be enhanced without a reduction in equality,but equality can never be enhanced without an efficiency loss.
• C)it is always the case that either efficiency and equality are both enhanced,or efficiency and equality are both diminished.
• D)None of the above are correct.

---

Definitions:

Fixed Costs

Financial obligations that are stable irrespective of the business's production or sales figures, such as rental payments, salary bills, and insurance.

Selling Price

The cost at which a service or item is made available for purchase by buyers.

Cost Behavior

Refers to how the total costs of production change when there is a change in the level of output.

Activity Analysis

The process of breaking down and examining activities within a process or system to improve efficiency and productivity.