Government failure may result from
A. Operational inefficiency by the public sector only.
B. Accurate valuations of benefits but inaccurate valuations of costs.
C. Misallocation of resources only.
D. Outright waste of resources by the public sector or misallocation of resources.
Answer: D
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Which of the following is true of American Depository Receipts (ADRs)? a. ADRs cannot be sold "over the counter." b. Each ADR is backed by a specific number of the issuer's local shares
c. An ADR is a stock that trades in foreign countries but represents a specified number of shares in a U.S. corporation. d. For foreign companies, ADRs are an easy way to purchase raw material from U.S. producers. e. ADRs are issued or sponsored in the United States by the federal government.
Generally speaking, protection from foreign competition benefits:
a. both domestic producers and foreign producers. b. both domestic consumers and foreign consumers. c. domestic consumers and foreign consumers. d. neither domestic producers nor foreign producers. e. domestic producers at the expense of domestic consumers.
The official dividing line between the poor and nonpoor is called the
a. life threshold. b. life edge. c. poverty line. d. beginning line.
If a revenue-maximizing firm is told that the price elasticity of demand is equal to one, it should:
A. raise prices 1 percent. B. lower prices 1 percent. C. raise prices until the elasticity becomes very high. D. keep the price where it is.