Asked by Johnny Guittard on Jul 01, 2024
Verified
When the government sells something it produces,_____.
A) revenue received must be greater than cost to justify government production
B) revenue received must equal cost because government is a nonprofit organization
C) the price does not always reflect the cost of producing the good
D) the price charged is an accurate measure of the benefits generated
E) it prices the good the same way a natural monopolist would
Government Production
The production of goods and services by government entities, often aimed at providing public goods that are not sufficiently supplied by the private sector.
Nonprofit Organization
An entity operating for purposes other than generating profit, typically focused on social, educational, or charitable activities.
Revenue Received
Income that an organization receives from its normal business operations, usually from the sale of goods and services to customers.
- Comprehend the notion of public goods and the reasoning for government involvement in supplying specific goods and services.
- Determine and articulate the justification for state involvement in the economic sphere, encompassing public goods provision, contract enforcement, and the application of antitrust regulations.
Verified Answer
ZK
Zybrea KnightJul 05, 2024
Final Answer :
C
Explanation :
The price set by the government for goods it produces does not always reflect the actual cost of producing those goods. This can be due to various reasons, including subsidies, policy objectives, or the desire to make goods accessible to a wider portion of the population.
Learning Objectives
- Comprehend the notion of public goods and the reasoning for government involvement in supplying specific goods and services.
- Determine and articulate the justification for state involvement in the economic sphere, encompassing public goods provision, contract enforcement, and the application of antitrust regulations.