Which of the following is NOT a valuable role of government in a free market society?
A. To enhance rent-seeking activities.
B. To reduce market power.
C. To provide public goods.
D. To reduce negative externalities.
Answer: A
You might also like to view...
The total amount the federal government has borrowed to make expenditures that exceed tax revenue is called
A) personal income taxes. B) federal expenditures. C) total government spending. D) the net government revenue. E) the national debt.
One reason why adverse selection problems arise in health insurance markets is that
A) sick people are more likely to want health insurance than healthy people. B) because of advances in medical technology, people are living longer. These medical advances are costly and drive up the price of insurance for everyone. C) fewer men and women are choosing medical careers because of the increase in the cost of malpractice insurance. D) the average age of citizens of the United States has increased in recent years, and will continue to increase over the next 20 to 30 years. As older citizens retire, more and more of their medical bills will have to be paid by younger workers.
If a monopolist can practice perfect price discrimination, the monopolist will
a. eliminate consumer surplus. b. eliminate deadweight loss. c. maximize profits. d. All of the above are correct.
When price is $6
A. there is a surplus.
B. there is a shortage.
C. there is both a surplus and a shortage.
D. there is neither a surplus nor a shortage.