In Order to Determine the Quantity of a Government-Provided Service

question 26

Multiple Choice

In order to determine the quantity of a government-provided service that should be produced, one should consider the

• A)price minus the average cost of the service.
• B)marginal cost and benefit of the service.
• C)total cost and benefit of the service.
• D)average cost and benefit of the service.
• E)marginal benefit and average cost of the service.

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Definitions:

Cash Flow

The total amount of money being transferred into and out of a business, especially affecting liquidity.

Personal Selling

A direct, one-on-one form of selling in which a salesperson uses skills and techniques to persuade a buyer to purchase a product or service.

Time

The ongoing sequence of events and the resource that can be managed, spent, saved, or wasted in activities or processes.

Extended Credit

A financial arrangement that allows a customer to purchase goods or services on account, paying for them at a later date.