A poorly functioning government can do which of the following to an economy?
A. lead to corruption
B. waste society's resources
C. destroy incentives
D. all of the above
Answer: D
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What is the equation for the demand (which is also MR) faced by the individual farmer?
In the competitive market for organic corn, market demand is QD = 340 – 2P and market supply is QS= 100 + 4P, where P is the price per bushel, and Q is market output in thousands of bushels. Each individual farmer faces a marginal cost function of MC = 10 + 3q, where q is the single farmer’s output level in thousands.
In the aggregate expenditures model of the economy, a downward shift in aggregate expenditures can be caused by a decrease in
A. taxes or an increase in government spending. B. government spending or an increase in taxes. C. saving or an increase in government spending. D. interest rates or a decrease in taxes.
A bank has $200 million in assets and $150 million in liabilities. The banks net worth is _____________ million and its leverage ratio is __________________
A) $350; 0.56 to 1 B) $175; 1.14 to 1 C) $50; 4 to 1 D) $25; 8 to 1
The relationship between the price that a perfectly competitive firm can charge buyers and the firm's marginal revenue is that the price is ________ marginal revenue over all output.
A. below B. equal to C. above D. sometimes above and sometimes below