Which of the Following Is Not a Reason Why Government

question 113

Multiple Choice

Which of the following is not a reason why government officials are willing to impose entry barriers?

• A)to raise revenue
• B)to encourage innovation which may improve the standard of living in the long run
• C)to increase economic efficiency
• D)to promote an equitable distribution of income

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Definitions:

Society

A community of individuals living in a structured and organized way, sharing customs, laws, and organizations.

Tax Structure

The system and various rates at which individuals and entities are taxed by government authorities.

Elasticity of Demand

A measure of how sensitive the quantity demanded of a good or service is to a change in its price, indicating how changes in price affect consumer demand.

Gas Stations

Businesses that sell fuel for automobiles, motorcycles, and other vehicles, often offering additional services like convenience store products.