Which of the Following Is a Disadvantage of Government Provision

question 420

Multiple Choice

Which of the following is a disadvantage of government provision of a public good?

• A)The government lacks information about what people are willing to pay for the good.
• B)The government does not provide enough of any public good.
• C)The private sector can provide all public goods at a lower cost.
• D)None of the above is a disadvantage.

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Definitions:

Cooling Coil

A device within an air handling unit or HVAC system used to lower air temperature and remove moisture by passing air over a cold surface.

Fixed Overhead Budget Variance

The difference between the actual fixed overhead costs incurred and the expected (budgeted) costs.

Standard Cost System

An accounting practice that uses predetermined costs for products or services to help managers control expenditures by comparing these standards with actual costs.

Commercial Refrigerators

Cooling appliances designed for commercial use to store perishable goods at required temperatures to prevent spoilage.