Which of the following is possible when the market fails?
A. It is impossible for government intervention to improve the mix of goods and services.
B. The mix of goods and services is at the correct point on the production possibilities curve.
C. The mix of goods and services is the optimal mix.
D. The mix of goods and services is on the production possibilities curve.
Answer: D
You might also like to view...
A change in ________ creates a movement along the aggregate demand curve, while a change in ________ shifts the aggregate demand curve
A) expected profits; tax rates B) the price level; government expenditures C) foreign income; the foreign exchange rate D) real wealth; human capital
When long-run average cost remains constant as output increases there are constant
A) marginal returns. B) returns to scale. C) economies of scale. D) diseconomies of scale.
Which of the following best describes the basic characteristics of noncooperative oligopoly models?
A) Managers make decisions based on the strategy they think their rivals will pursue. B) Managers attempt to deliberately mislead their rivals regarding the strategy they will pursue. C) When making decisions, managers basically ignore the mutual interdependence that exists among rivals. D) Managers refuse to negotiate with their rivals when it comes to such decisions as what price to charge.
The Fed will raise the interest rate by the greatest amount when the economy is on the ________ part of the AS curve and there is ________.
A. flat; an increase in taxes B. steep; a decrease in taxes C. flat; a decrease in taxes D. steep; an increase in taxes