What is government failure?
What will be an ideal response?
Government failure occurs when the government becomes the tool of the rent seeker and the allocation of resources is made even less efficient by the intervention of government.
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This year Iceland has a real GDP per person that is approximately 8 times greater than that of Cape Verde. Cape Verde's growth rate of real GDP per person was 5.2 percent
If Cape Verde maintains this current growth rate, approximately how many years will it take for Cape Verde's real GDP per person to reach the same level that Iceland has this year? A) 13.5 years B) 20 years C) 27 years D) 40 years E) 54 years
Which of the following was an implication of the U.S. government's Clean Air Act Amendments (CAAA) of 1977?
A) It acted as a barrier to entry. B) It increased consumer surplus. C) It reduced the profits of existing firms. D) It reduced the market power of existing firms.
IF a period of substantial inflation, increasing gov. spending would _________
Fill in the blank(s) with the appropriate word(s).
To be eligible for a welfare program, a recipient must be elderly.
Answer the following statement true (T) or false (F)