Market failure means that
A. the law of supply and demand has stopped functioning.
B. resources are not allocated efficiently.
C. the stock market has crashed.
D. prices are no longer reliable indicators of how much things cost.
B. resources are not allocated efficiently.
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If an individual's income increases
A) the person's indifference curves shift outward in a parallel manner. B) the person's budget line shifts outward in a parallel manner. C) there will be no impact on the individual's budget line or indifference curves. D) None of the above answers is correct.
Which of the following would cause both an increase in the price level and an increase in real output?
A. An increase in transfer payments. B. A tax hike. C. A decrease in government spending. D. A decrease in production costs.
An example of a microeconomic decision is a situation in which
A) the Federal Reserve considers how much to increase the money supply during the coming month in an effort to constrain the rate of inflation. B) Congress and the president seek to reach a compromise on how much to increase government spending in an effort to influence national expenditures. C) a firm evaluates how much to reduce the price of its product in an effort to influence sales and boost its profits. D) the U.S. Treasury contemplates buying foreign currencies in an effort to influence exchange rates with an aim to boosting demand for U.S. goods and services.
________ is financed through general revenues.
A. The Social Security system B. The SNAP program C. Unemployment compensation D. Medicare