Name the problems government faces in directing and managing the economy
Please provide the best answer for the statement.
Government faces various problems when directing and managing the nation. (1) Government economic policies are not self-correcting. Government intervention has difficulty dealing with the allocation of resources when a change occurs in the market. (2) The massive size and scope of the economy can make identify and correcting inefficient plies difficult. (3) A large government requires many government employees. The bureaucracy can lead to inefficiencies due to its large size and hierarchical nature. (4) To ensure all laws are enforced and consistent, the bureaucracy is inflexible and requires a significant amount of paperwork and regulation. (5) Due to the size and scope, the bureaucracies have difficulty collecting and distributing information along the chains. (6) The size and scope of the bureaucracy also make it difficult to sure the proper individuals are held accountable. Small programs may be running inefficiently without influencing reelection and appointment chances.
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The owner of an oil well in Texas sells 1000 barrels of oil to a refinery in Mexico for $12,000 for refining. This transaction
A.) has no effect on GDP because this is the sale of an intermediate product B.) has no effect GDP because the refinery is in Mexico C.) will increase GDP by $12,000 D.) decreases GDP because oil reserves have fallen by 1000 barrels
The Fed operating procedures employed between 1979 and 1982 resulted in ________ swings in the federal funds rate and ________ swings in the M1 growth rate
A) increased; increased B) increased; decreased C) decreased; decreased D) decreased; increased
For a number of years Canada and many European countries have had higher average unemployment rates than the United States. The Phillips curve suggests that these countries
a. have higher average inflation rates than the United States. b. have long-run Phillips curves to the right of the United States'. c. may have less generous unemployment compensation or lower minimum wages. d. All of the above are consistent with the evidence on unemployment rates.
In a market in which the government has set a price ceiling below the equilibrium price:
A. the quantity demanded will equal quantity supplied. B. there will be excess supply. C. quantity supplied will exceed quantity demanded. D. a black market might develop.