There Is Government Failure When

question 86

Multiple Choice

There is government failure when

• A) policymakers are captured by special interest groups.
• B) a minority government is defeated in the House of Commons.
• C) government policy serves the public interest.
• D) economists lie to politicians.
• E) markets quickly self-adjust.

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Definitions:

Activity Variance

measures the difference between the actual costs incurred and the budgeted costs based on the actual level of activity.

Actual Revenue

The real income that a company receives from its business activities, measured over a specific period.

Static Planning Budget

A budget for a specific amount of sales or production that does not change as volume changes.

Activity Variance

The difference between the planned activity and the actual activity in terms of costs or hours.