Governments May Choose to Intervene in a Market in an Attempt

question 120

Multiple Choice

Governments may choose to intervene in a market in an attempt to:

• A) encourage the consumption of certain goods.
• B) discourage the consumption of certain goods.
• C) redistribute surplus.
• D) All of these are true.

---

Definitions:

Compound Interest

Interest computed on the original amount of a deposit or loan, incorporating all previously accrued interest from past periods.

Desired Rate

Typically refers to the target interest rate set by individuals or businesses for financial returns or lending activities.

Average Rate of Return

An investment's return, expressed as a percentage, which is calculated by dividing the average annual profit by the initial investment cost.

Cash Payback Method

An analysis technique to determine the time needed to recoup the initial investment in a project, based on cash flows.