When the Government Sells Something It Produces

question 51

Multiple Choice

When the government sells something it produces,

• A)revenue received must be greater than cost to justify government production
• B)revenue received must equal cost because government is a nonprofit organization
• C)the price does not always reflect the cost of producing the good
• D)the price charged is an accurate measure of the benefits generated
• E)it prices the good the same way a natural monopolist would

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Definitions:

Civic Center

A designated area in a city that is focused on civic activities and may include government buildings, theaters, and sports facilities.

Loitering

The act of remaining in a particular public place for a protracted time without any apparent purpose, often considered suspicious.

Bodily Contact

A term referring to physical touch or interaction between individuals.

Tort

An act of civil misconduct leading to loss or damage for the victim, which makes the perpetrator legally responsible.