In a market economy, government intervention

a. will always improve market outcomes.
b. reduces efficiency in the presence of externalities.
c. may improve market outcomes in the presence of externalities.
d. is necessary to control individual greed.


c

Economics

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The graph shows the market for cell phones. The government imposes a sales tax on cell phones at $10 a cell phone. The excess burden of the sales tax on cell phones is

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Economics

An imperfectly competitive firm faces a demand curve that is ________, while a perfectly competitive firm faces a demand curve that is ________.

A. perfectly inelastic; perfectly elastic. B. horizontal; downward-sloping. C. perfectly inelastic; downward-sloping. D. downward-sloping; perfectly elastic.

Economics

Economic growth in Lillian’s country has been very slow. Which of the following offers the most likely explanation for this?

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Economics