Some economists advocate government intervention in a market economy

A. when resource costs for a private producer do not reflect the full cost to society.
B. to stabilize the economy.
C. to produce collective goods and services.
D. all of the above.


Answer: D

Economics

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Refer to Figure 4-1. If the market price is $4.00, what is the maximum number of ice cream cones that Kendra will buy?

A) 0 B) 2 C) 3 D) 4

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During 1970-1997, the U.S. federal government was

A) in deficit every year. B) in surplus every year. C) in deficit most of those years. D) balanced every year.

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Refer to Figure 33-2. Starting from point B and assuming that aggregate demand is held constant, in the long run the economy is likely to experience

a) a rising price level and a rising level of output. b) a falling price level and a rising level of output. c) a rising price level and a falling level of output. d) a falling price level and a falling level of output. e) a falling price level and a rising level of unemployment.

Economics

Suppose real GDP is $12.6 trillion and potential GDP is $12.4 trillion. To move the economy back to potential GDP, Congress should

A) lower government purchases by an amount less than $200 billion. B) lower government purchases by $200 billion. C) raise taxes by $200 billion. D) lower taxes by $200 billion. E) raise taxes by an amount more than $200 billion.

Economics