Because Government Bodies Have the Power to Make Up for Inadequate

question 72

Multiple Choice

Because government bodies have the power to make up for inadequate supply of a good:

• A) its presence as a producer is in virtually every market.
• B) it can be efficiency enhancing in markets for public goods.
• C) they have incentive to compete with local businesses.
• D) None of these statements is true.

---

Definitions:

Legal Rules

Principles or guidelines established by authority, society, or custom, which are enforceable through legal institutions.

Foreign

Related to or originating from a country different from the one being referred to, often implies external or outside influence or components.

Alien Corporations

Companies that are incorporated in one country but do business in another.

Professional Corporation Acts

Specific laws enacted to regulate the formation and operation of corporations providing professional services, like legal or medical practices.