When market failure occurs, the role of government is to
A. Do nothing.
B. Eliminate markets.
C. Push market outcomes closer to the ideal.
D. Create an alternative to markets.
Answer: C
You might also like to view...
In the market for labor:
A. firms create the supply. B. the price in the market is the interest rate. C. individuals are the sellers of the good. D. there is never disequilibrium.
The formula for nominal GDP is
a. Nominal GDP = Real GDP + GDP Deflator. b. Nominal GDP = Real GDP – GDP Deflator. c. Nominal GDP = GDP Deflator / Real GDP. d. Nominal GDP = GDP Deflator x Real GDP.
The smallest contributor to total federal tax revenues in 2014 was the: a. personal income tax. b. corporate income tax. c. excise tax
d. payroll tax.
An advantage of a consumption tax is that it does not distort the incentive to save
a. True b. False Indicate whether the statement is true or false