Government failure, when government actions lead to inefficiency, can result in
A) overprovision.
B) underprovision.
C) both A and B.
D) neither A nor B.
C
You might also like to view...
The producer surplus on a unit of output is the difference between the market price and the opportunity cost of producing it
Indicate whether the statement is true or false
The unemployment rate that is typically reported in the media is ________
A) based on a survey from 150,000 business establishments on weekly earnings, number of workers and hours worked B) computed every three months C) based on a survey of 60,000 households D) reported by the Treasury Department E) none of the above
If the marginal propensity to consume is 0.80, the value of the spending multiplier will be 5
a. True b. False Indicate whether the statement is true or false
Which of the following is true regarding the effect of deficits from 1980-2005 in the U.S.?
a. They did not lead to substantial inflation because the Fed did not monetize the deficits. b. They did not lead to substantial inflation because the Fed did monetize the deficits. c. They led to substantial inflation because the Fed did not monetize the deficits. d. They led to substantial inflation because the Fed did monetize the deficits.