Which of the Following Properly Contrasts Market and Government Incentives

question 23

Multiple Choice

Which of the following properly contrasts market and government incentives?

• A)The profit motive encourages efficiency in markets, whereas the ability of people to vote encourages efficiency in the government to the same or greater degree.
• B)Markets are free-wheeling, allowing for unethical conduct.Government rules do not allow unethical conduct.
• C)In markets, the profit motive encourages efficiency.In government, the philanthropic motive encourages efficiency.
• D)In markets, the profit motive encourages firms to produce what consumers want.In government, there is a tendency to seek to satisfy central authority.
• E)In markets, there is a profit motive.In government, there is no motivation.

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Definitions:

Job Order Costing

A cost accounting method used to track the costs associated with a specific job or order, capturing direct labor, direct materials, and applied overhead.

Process Costing

A method of costing used mainly in manufacturing where costs are assigned to batches of products rather than individual items.

Job Cost Sheets

Records that detail the materials, labor, and overhead costs associated with a specific job.

Unit Cost Trends

The pattern or movement in the cost to produce one unit of a product over a specific period.