Which of the Following Is NOT a Reason for Government

question 4

Multiple Choice

Which of the following is NOT a reason for government intervention in insurance markets?

• A) adverse selection
• B) positive externalities
• C) redistribution
• D) paternalism

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Definitions:

Federal Government

The federal government is the national government, which holds the ultimate authority over a federated country, responsible for executing laws, and managing national affairs and foreign policy.

Federal Budget

The government's plan for revenue and expenditures for a fiscal year, detailing how federal funds will be spent and collected.

Direct Taxes

Taxes levied directly on an individual's or organization's income or wealth, such as income tax and property tax.

Indirect Taxes

Taxes that are not directly paid by an individual but instead are levied on goods and services, such as sales tax or value-added tax.