Market Activity Differs from Government Activity Because

question 207

Multiple Choice

Market activity differs from government activity because

• A)markets generally force prices to below-cost levels
• B)governments never charge for the services they provide
• C)markets do not use voluntary exchange mechanisms
• D)markets provide a direct link between benefits and costs
• E)governments have strong incentives to keep costs under strict control

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Definitions:

Entrepreneur

An individual who creates new business ventures, taking on financial risks in the hope of profit.

Economic Losses

Financial losses incurred by businesses or economies, often as a result of adverse conditions, decisions, or events that affect income or assets.

Land Resource

Natural resources encompassing the geographical area and the minerals, water, and fertility it possesses.

Natural Gas

A fossil fuel formed from plants and animals buried underground and exposed to extreme heat and pressure over millions of years, used as energy.