Suppose That a Local Elected Official Gives Noncompetitive Grants to Businesses

question 28

Multiple Choice

Suppose that a local elected official gives noncompetitive grants to businesses owned by his relatives.This is consistent with:

• A) goods being provided more efficiently by the private sector than by the public sector.
• B) government corruption.
• C) size-maximizing bureaucracy.
• D) theft.

Understand the concept of economic profit versus salaries and its significance in business.

Discern the difference between insurable and uninsurable risks in entrepreneurship.

Recognize the functions and effects of economic policies on the supply of loanable funds and investment rates.

Understand the relationship between nominal and real interest rates, inflation, and investment decisions.

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Definitions:

Genus

A category of biological classification that ranks above species and below family, used to group species that share common characteristics.

Species

A group of living organisms consisting of similar individuals capable of exchanging genes or interbreeding, and are classified under a common and distinct category in biology.

Concrete

Pertaining to actual things or instances, rather than abstract qualities, ideas, or theories.

Visible Object

An entity or item that can be seen or perceived visually by the human eye.