One HEADLINE article in the text suggest that 30 percent of Americans trust the federal government to do the right thing. If government intervention makes the economy worse off, this is referred to as:
A) Government failure.
B) Market failure.
C) Central planning.
D) Scarce resources.
Answer: A) Government failure.
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What matters to people is the real value of money or income
Indicate whether the statement is true or false
From the table above, which gives data about the U.S. labor market in 1933, the labor force participation rate is
A) 12 percent. B) 48 percent. C) 60 percent. D) 95 percent. E) 65 percent.
People derive utility in their lives from consuming goods (all other goods), g, and clean air (measured as the number of particulates removed per m3), a, as measured with the utility function U(g,a) = g0.6a0.4
The price index of consumer goods equals $20 per day. Income equals $1000. What is likely to happen to the number of asthma cases as the price of clean air (abatement cost) increases from $10 to $20? A) Asthma cases decrease because the particulants per m3 increases by 2 units. B) Asthma cases increase because the particulant per m3 decreases by 2 units. C) Asthma cases increase because the particulants per m3 increase by 2 units. D) There is not enough information to answer this question.
The socially optimal amount of pollution is
A) zero. B) greater than zero. C) indeterminant. D) unattainable.