The positive contribution of politics in the determination of economic policy is that it takes market failures and failures of market outcome into account in formulating policy.
Answer the following statement true (T) or false (F)
True
The negative contribution is that political decisions do not always reflect the will of society.
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Entrepreneurs do all of the following EXCEPT
A) organize labor, land, and capital. B) come up with new ideas about what and how to produce. C) bear risk from business decisions. D) own all the other resources used in the production process.
Refer to the table below. What is the expected price of the input in Country A?
The above table provides the probability distribution of price of an input next year in Country A and Country B.
A) $999
B) $501
C) $500
D) $499
One unintended consequence of the various attempts to restrict farm acreage was that
A) output generally decreased, price increased, and farmers earned higher incomes. B) individual farmers intensified their efforts to harvest crops from the land still under cultivation. C) farmers' incomes remained constant in real terms. D) the land that was set aside became less productive.
The formal recognition of the threat to the European Union allowed for ________ because the systemic risk clauses of Articles 123 and 125 were invoked.
A. cross-national bailouts B. purchase of debt by the European Central Bank C. tax cuts D. increases in spending