Economists consider governments to be "wasteful":
A. whenever they over- or underallocate resources to a project.
B. only when they overallocate resources to a project.
C. only when they underallocate resources to a project.
D. whenever they attempt to correct a market failure.
Answer: A
You might also like to view...
The Federal Open Market Committee is
A) the main policy-making body of the Fed. B) a seven-member board, each serving a 14-year term. C) comprised of the presidents of the 12 Federal Reserve Banks. D) another name for the Board of Governors. E) the government committee charged with determining income tax rates.
In the mid-1980s, velocity "fell off the rails," growing much slower than its historical trend of 3.4 percent. Had the Fed assumed a constant growth rate of 3
4 percent and maintained a constant growth rate of money supply rather than increasing the growth rate of the money supply as it did, A) nominal GDP would have grown more slowly as would real GDP. B) nominal and real GDP would have grown more rapidly. C) nominal GDP would have grown more rapidly faster and GDP would have grown more slowly. D) real GDP would have grown more rapidly faster and nominal GDP would have grown more slowly.
Frank owns an apple farm and plans to spend 4 hours today picking apples. The number of apples he can pick per hour depends on the total number of hours he spends working in either the east orchard or the west orchard in the manner shown in the table below.Hours inEastOrchardNumber ofApples PerHourHours inWestOrchardNumber ofApples PerHour140110232210325310420410How should Frank divide his time between the east and the west orchard?
A. He should spend all 4 hours in the east orchard. B. He should spend 2 hours in east orchard and 2 hours in the west orchard. C. He should spend 3 hours in the east orchard and 1 hour in the west orchard. D. He should spend 1 hour in the east orchard and 3 hours in the west orchard.
Puma's share of the athletic shoe market is 30% The own price elasticity of demand for Puma athletic shoes is 2.5 . What would be the own price elasticity of athletic shoes as a whole?
a. 8.3 b. 0.75 c. 0.54 d. 1.5