For all types of goods that are not private goods, the market fails to allocate resources efficiently because _________________
Fill in the blank(s) with correct word
property rights are not well established. That is, some item of value does not have an owner with the legal authority to control it.
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Starting from long-run equilibrium, a large increase in government purchases will result in a(n) ________ gap in the short-run and ________ inflation and ________ output in the long-run.
A. expansionary; higher; potential B. recessionary; higher; potential C. recessionary; lower; lower D. expansionary; higher; higher
Name the two international institutions that have been formed to attain higher rates of global economic growth and briefly discuss what each of the agencies does
What will be an ideal response?
If price decreases and demand is ________ then total revenue will decline
a. perfectly elastic b. inelastic c. unit elastic d. elastic
Which of the following is most important for the successful functioning of any economy?
A) Clearly understood and generally accepted rules. B) Common and reasonably specific goals for people to pursue. C) Greed. D) Low taxes relative to income. E) Sufficient purchasing power to buy all of an economy's goods and services.