A Similarity Between the Market and the Public Sector Is

question 55

Multiple Choice

A similarity between the market and the public sector is that:

• A)both are guided by the invisible hand.
• B)both are controlled by the government.
• C)scarcity is present in both the sectors.
• D)public goods are not produced by either of the two.
• E)government intervention leads to allocative efficiency in both the sectors.

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Definitions:

Current Account

A component of a country's balance of payments that includes the trade balance, net primary income, and net secondary income.

Financial Account

Part of the balance of payments, it records transactions that involve the exchange of international ownership of assets.

Balance Surplus

A situation in which income or receipts exceed expenditures or outlays, often referring to a country's trade or fiscal balance.

Balance Deficit

A situation in financial accounts, particularly in national accounts, where total outflows exceed total inflows.