Government's Unfunded Liabilities

question 112

Multiple Choice

Government's unfunded liabilities

• A) result from the political bias toward immediate benefits and deferred costs.
• B) result in more efficient policies in an attempt to satisfy these liabilities.
• C) are caused primarily by market failures.
• D) only occur in democratically elected governments.

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Definitions:

Present Value

The current worth of a future sum of money or stream of cash flows given a specified rate of return.

Extraction Costs

The expenses associated with the process of removing raw materials from the earth for use in production or consumption.

Fishery Collapse

A rapid decline in a fishery’s population because its fish are being harvested faster than they can reproduce.

Harvesting Rates

The speed at which natural resources are extracted or harvested, impacting sustainability and future availability.