Micro and macro failures of the marketplace never justify government intervention.
Answer the following statement true (T) or false (F)
False
The potential micro and macro failures of the marketplace provide specific justification for government intervention.
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One reason that the aggregate demand curve has a negative slope is because
A) firms supply more when prices rise. B) people buy more foreign goods when the domestic price level rises. C) the amount of money in the economy increases when the price level rises. D) firms supply less when prices rise.
The distinguishing characteristic of a public good is
A) noncompetitive production. B) durability. C) exclusivity. D) nonrival consumption.
Choosing to have your clothes laundered instead of starching and ironing them yourself because it takes you an hour to iron shirts because you can do many other things in a hour more productively is an example of:
a. Sunk Cost b. Time Value of Money c. Law of Comparative Advantage d. Law of Supply and Demand
John Maynard Keynes wrote which of the following?
A) Das Kapital B) The Scope and Method of Political Economy C) Wealth of Nations D) The General Theory of Employment, Interest and Money E) all of the above