The Direct Resource Costs of Government Intervention Include the

question 29

Multiple Choice

The direct resource costs of government intervention include the

• A)increased costs of production arising from compliance with regulations.
• B)resulting loss of productivity in the private sector.
• C)opportunity costs of forgone investment.
• D)salaries of government regulators.
• E)rent seeking.

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Definitions:

Net Income

The residual financial gain of a company post all expenditures and taxes being deducted from its revenues.

Book Value

The value left over from a company’s assets once its obligations are deducted, as listed on the balance sheet.

Significant Influence

The power to participate in the financial and operating policy decisions of an investee but not control those policies.

Net Income

Net income is the profit a company makes after deducting all its costs, expenses, interest, and taxes from its total revenues.