A market economy allocates resources primarily in accordance with orders from government bureaucrats
a. True
b. False
Indicate whether the statement is true or false
False
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The mercantilist economic doctrine was widely followed from the sixteenth to the eighteenth century in Europe
Mercantilists advocated the use of tariffs to restrict trade as they believed that countries that export more than they import will increase wealth. What could be the problem with such an economic policy?
The effect of a government subsidy in a market where a positive externality is present is:
A. to increase surplus. B. to increase efficiency. C. to make consumers internalize the external benefit. D. All of these statements are true.
Many external costs occur because
a. people do not pay the true cost of using a resource. b. people do not pay the private cost of using a resource. c. companies do not pay the market price for natural resources. d. companies pay more than the true cost of using a resource.
Older people often reminisce about the “good old days” when prices were much lower. This is misplaced nostalgia primarily because in the “good old days,”
A. prices were not really that low. B. wages were much lower also. C. people worked longer hours. D. people had more leisure time.