The Two Most Important Rationales for Government Intervention in Non-Monopolistic

question 88

Multiple Choice

The two most important rationales for government intervention in non-monopolistic markets are

• A) market failure and asymmetric information.
• B) substandard products and job creation for public employees.
• C) job creation and income maintenance.
• D) unfair pricing and usury.

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Definitions:

Trial Balance

A bookkeeping worksheet in which the balances of all ledgers are compiled into debit and credit account column totals that are equal indicating that the ledger accounts are properly balanced.

Residual Value

The estimated value that an asset will have at the end of its useful life.

Depreciation

The systematic allocation of the cost of a tangible asset over its expected useful life, reflecting its consumption, wear and tear, or obsolescence.

Accumulated Depreciation

The total amount of an asset's cost that has been allocated as depreciation expense over its useful life, reducing its book value on the balance sheet.