When Government Action Is Justified Based on the Argument That

question 13

Multiple Choice

When government action is justified based on the argument that everyone agrees to be coerced _____.

• A)we cannot be sure that everyone is in favor of the action
• B)the same justification is true of market exchange
• C)we can be sure that the current state of affair is Pareto efficient
• D)the private interest becomes the public interest

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Definitions:

Risk

The possibility of suffering harm or loss; uncertainties affecting the outcome of investment decisions.

Start-Up Process

The series of steps entrepreneurs follow to establish a new business, including idea generation, market research, and securing financing.

Harvest

The stage when the owner removes him or herself from the business. Harvesting a business can be thought of as picking the fruit after years of labor.

Small Business Owner

An individual who owns and operates a business of small size, defined by its revenue, assets, or number of employees, often playing a hands-on role in its operations.