The existence of public goods can be a source of market failure.
Answer the following statement true (T) or false (F)
True
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In the figure above, firms
A) pay taxes directly to governments. B) sell goods and services to governments in goods markets. C) receive transfers from governments through factor markets. D) own factors of production. E) do all of the above.
The market-clearing price is:
a. the price at which the market is in equilibrium. b. the price at which mutually beneficial trade take place. c. the price at which sellers earn the maximum profit. d. the price at which consumer surplus is zero.
Over the long run if central banks want to avoid high rates of inflation, they need to be concerned with the:
A. unemployment rate. B. real economic growth rate. C. money growth rate. D. productivity of labor.
A permanent reduction in inflation would
a. permanently reduce the frequency of price changes and permanently lower unemployment. b. permanently reduce the frequency of price changes and temporarily raise unemployment. c. temporarily reduce the frequency of price changes and temporarily lower unemployment. d. temporarily reduce the frequency of price changes and temporarily raise unemployment.