Which of the Following Occurs If Government Intervention Forces the Economy

question 104

Multiple Choice

Which of the following occurs if government intervention forces the economy inside the production possibilities curve?

• A)Market failure.
• B)Government failure.
• C)Externalities.
• D)Income inequality.

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Definitions:

Wiring

Involves the system of insulated conductors used to supply electricity to a building, equipment, or circuit.

Repainting

The process of applying a new coat of paint to a surface to restore its appearance or protect it.

Equipment Account

A ledger account that records the purchase price and subsequent expenses related to the acquisition of equipment.

Installation Costs

Expenses incurred to place an asset into service and prepare it for its intended use.