GK
BUSINESS ECONOMICS
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Question
[CLICK ON ANY CHOICE TO KNOW THE RIGHT ANSWER]
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Which of the following is a way that government can borrow money from the private sector in order to pay the costs of regulation?
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By selling licenses.
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By raising taxes.
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By setting prices.
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By issuing bonds.
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Explanation:
Detailed explanation-1: -Any capitalist would argue that command economies face at least two major problems: first is the incentive problem and second is an information vacuum among the central planners making all the decisions. The incentive problem starts at the top.
Detailed explanation-2: -As an economic system, private enterprise is characterized by competition, open markets, private ownership, and private initiative. Producers take production initiative on the basis of price and profit-and-loss signals essentially given by consumers.
There is 1 question to complete.