Government failure occurs when government intervention fails to improve economic outcomes or makes them worse.
Answer the following statement true (T) or false (F)
True
In such a case, the market outcome would be preferred to government intervention.
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Firms exist because of
A) incomplete contracts. B) team production. C) the incentive to free ride. D) all of these choices.
The price of Y is $10.According to the above figure, if the price of X is $5, what combination of X and Y will a utility-maximizing consumer choose?
A. 120X, 250Y B. 200X, 620Y C. 80X, 20Y D. 120X, 620Y E. none of the above
Suppose Thelma and Louise both sell fried green tomatoes in a perfectly competitive market. If Louise increases her output,
a. Thelma must reduce output b. the price Thelma can charge falls c. the price Thelma can charge rises d. the price Thelma can charge is unaffected e. Thelma's profits must fall
Which of the following is a bank liability?
A. Reserve deposits at the Fed. B. Loans made to customers. C. Transactions account balances. D. Securities the bank has purchased.