According to Hayek, a social planner has no hope of matching the efficiency of a competitive pricing system because
a. no social planner can be completely benevolent in his actions.
b. a social planner cannot have access to the specialized knowledge of individuals.
c. the social planner will be unable to fully monitor the activities of his agents.
d. people are selfish and will not be actively altruistic to the social planner.
b. a social planner cannot have access to the specialized knowledge of individuals.
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A productivity growth slowdown can be shown as year-to-year fluctuations of real GDP around potential GDP
Indicate whether the statement is true or false
Using Figure 6-2, calculate the price elasticity of demand (dropping all minus signs) between P = 10 and P = 12.
A. 2.20 B. 0.45 C. 0.80 D. 1.25
For the Coase theorem to work there must be clear assignment of property rights
Indicate whether the statement is true or false
A lower interest rate ________ Ap and thus causes ________ the IS curve
A) raises, movement downward along B) lowers, movement upward along C) raises, a parallel rightward shift of D) lowers, a parallel leftward shift of