The concept of “government failure” implies
A. laissez faire is always best.
B. government intervention is always justified since government never fails.
C. no market failure can be corrected by government intervention.
D. government intervention to correct a “market failure” sometimes fails.
Answer: D
You might also like to view...
Which of the following chain of events occurs when a tariff is imposed on a good?
A) Domestic prices fall, shifting the demand curve rightward, and consumers buy more of the good. B) Domestic prices fall, decreasing the domestic quantity supplied and increasing the quantity demanded. C) Domestic prices rise, shifting the domestic supply curve rightward. D) Domestic prices rise, shifting the demand curve leftward and the domestic supply curve rightward. E) Domestic prices rise, decreasing the quantity demanded and increasing the domestic quantity supplied.
Which of the following is true of taxes?
What will be an ideal response?
An increase in the demand for computers leads to an increase in demand for computer programmers. This situation arises because:
A. programmers minimize the costs of production. B. the supply of programmers has decreased. C. the demand for programmers is a derived demand. D. of producer sovereignty in resource markets.
Which of the following examples is most likely part of the underground economy?
a. Sam opens a hot dog stand at a busy intersection of a city. b. Avery trades in a used car to an automobile dealership. c. Hudson earns money going from house to house offering to shovel snow. d. Chloe sells official team souvenirs outside of a ballpark.