When markets fail, public policy can potentially remedy the problem and increase economic efficiency
a. True
b. False
Indicate whether the statement is true or false
True
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Autonomous expenditure includes
A) consumption expenditure, investment, and net taxes. B) investment, government expenditure on goods and services, and exports. C) consumption expenditure, investment, and imports. D) investment, government expenditure for goods and services, and imports. E) consumption expenditures, investment, and exports.
The price paid by a tenant to rent an apartment most closely reflects the cost to the
A) landlord of constructing (or purchasing), maintaining, and operating the apartment. B) landlord of not renting to someone else. C) society of the opportunities thereby forgone. D) tenant of finding an alternative place to live.
Economics is the study of how society manages its
a. limited wants and unlimited resources. b. unlimited wants and unlimited resources. c. limited wants and limited resources. d. unlimited wants and limited resources.
If an externality is present in a market, economic efficiency may be enhanced by
a. increased competition. b. weakening property rights. c. better informed market participants. d. government intervention.