The term government failure refers to the:
A. Large losses suffered by publicly owned water, gas, and electric companies
B. Large number of bankruptcies that have occurred recently among local governments
C. Economically inefficient outcomes caused by voting problems or incentive structures in government
D. Inability of government agencies to provide adequate police protection in low-income neighborhoods
C. Economically inefficient outcomes caused by voting problems or incentive structures in government
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Figure 4.2 illustrates the supply and demand for t-shirts. If the actual price of t-shirts is $7, there is an
A) excess supply of 8 t-shirts. B) excess supply of 10 t-shirts. C) excess demand of 8 t-shirts. D) excess demand of 10 t-shirts.
Which of the following statements is true?
A) Eurobanks are able to create money. B) Eurobanks accept deposits but not loans. C) Eurobanks are essentially intermediaries. D) Both A and C.
According to Tobin's q theory, when equity prices are low the market price of existing capital is ________ relative to new capital, so expenditure on fixed investment is ________
A) cheap; low B) dear; low C) cheap; high D) dear; high
Which of the following is NOT a way to signal high quality
a. wearing everyday clothes to a job interview b. leaving a big tip for the waiter after a dinner date c. offering an expensive engagement ring to your bride d. Visiting the beauty salon before a big date