Government policies are coercive, whereas markets are not. This implies that
a. government activity will always be less efficient than market activity
b. households cannot maximize utility if they consume any government goods and services
c. market transactions result in an equal number of gainers and losers
d. self-interest and public interest are always in conflict
e. government can provide some goods and services when private markets fail to do so
E
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How do the hierarchical and dual mandates differ in terms of macroeconomic consequences?
What will be an ideal response?
The path of income over a lifetime is likely to be much more stable than the path of consumption.
Answer the following statement true (T) or false (F)
At a market clearing price
A) the quantity demanded will just equal the quantity supplied. B) there will be an excess quantity demanded. C) there will be a tendency for price to rise over time. D) the demand function will shift outward.
The dominant school of economic thought until midway through the Great Depression of the 1930s was:
a. classical. b. Keynesian. c. monetarism. d. supply-side. e. rational expectations.