Government failure refers to
a. a mismatch between employer incentives and firm objectives
b. the failure of government to provide an efficient quantity of public goods
c. the inability of firms to produce output efficiently
d. the overabundance of competitors with government in production
e. the under-allocation of tax revenues
B
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Suppose the United States chose to legalize the production and use of marijuana, but also decided to put a tax on the good (with the tax paid by producers). After doing so, suppose that the price that consumers paid rose, and the amount that growers got to keep fell. This would
A. indicate that the demand-side effect was smaller than the net supply-side effect. B. be shockingly counter-intuitive, because there would be no supply-and-demand model that could explain it. C. suggest that the supply curve is vertical. D. indicate that the demand-side effect was greater than the supply-side effect.
A decrease in the expected future exchange rate ________ the demand for U.S. dollars and shifts the demand curve for U.S. dollars ________
A) increases; rightward B) decreases; rightward C) decreases; leftward D) increases; leftward
Explain how derivatives were used to increase risk making the financial crisis of 2007–2009 more severe.
What will be an ideal response?
Compensation of employees is the largest component of GDP using the income approach
a. True b. False Indicate whether the statement is true or false