Explain how the government can help the economy avoid a coordination failure
What will be an ideal response?
Discussed in the chapter.
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Which of the following would not be a negative production externality associated with tire production?
a. smoke from the tire factory worsens the city's air quality b. toxins from the tire-making process seep into the area's ground water c. neighbors experience the bad smells that come from the tire factory d. the rubber used to make tires could be used to make something else e. all of these are negative production externalities
Over the last 10 years in the United States, the private sector unionization rate has ________ and the public sector unionization rate has ________.
A. fallen; risen B. risen; risen C. fallen; fallen D. risen; fallen
Keynesians
A. believe capitalism is inherently stable. B. believe the markets in a capitalistic economy are highly competitive. C. argue against the use of discretionary monetary policy. D. contend that government intervention in the economy is desirable.
What is the Stolper-Samuelson theorem? What are the underlying conditions and assumptions for the theorem
What will be an ideal response?