Which of the Following Is Consistent with a Political and Legal

question 10

Multiple Choice

Which of the following is consistent with a political and legal framework that discourages economic growth?

• A)The allocation of bank credit by the government rather than by markets
• B)A speedy approval process for new businesses
• C)Agricultural prices that are allowed to vary according to market conditions
• D)Taxation and regulation that are not very burdensome

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Definitions:

Existing Capacity

The current maximum output or production level that a facility or factory can achieve using its available resources.

Accounts Payable

Short-term liabilities representing money owed by a company to its creditors for goods and services that have been purchased on credit.

Inventory Balance

The value of all the goods available for sale or use by a business at the end of an accounting period.

Accounts Receivable

Financial obligations of customers to a business for services or goods delivered but not remunerated.