All Remedies for Externalities Share the Goal of

question 495

Multiple Choice

All remedies for externalities share the goal of

• A)moving the allocation of resources toward the market equilibrium.
• B)moving the allocation of resources toward the socially optimal equilibrium.
• C)increasing the allocation of resources.
• D)decreasing the allocation of resources.

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Definitions:

Capital Projects Funds

Governmental accounting funds used to account for financial resources that are allocated for the acquisition or construction of major capital assets by a government, except those financed by proprietary funds.

Debt Service Funds

Governmental funds used to account for the accumulation of resources for, and the payment of, long-term debt principal and interest.

Restricted

Refers to funds or assets that are earmarked for specific purposes and cannot be used for general expenditures.

Nonspendable

Funds not available for spending because they are legally or contractually required to remain intact.