When market failures occur
A) the invisible hand will correct for the market failures.
B) the price system will correct the market failures.
C) people will reduce their consumption.
D) the government can step in to correct the market failure.
D
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Define the aggregate production function. Discuss why the aggregate production function exhibits diminishing returns
What will be an ideal response?
In the case of Thailand in 1997, the Thai government was running a large:
A) current account surplus, requiring capital inflows from abroad. B) current account deficit, requiring capital inflows from abroad. C) current account surplus, requiring capital outflows. D) current account deficit, requiring capital outflows.
The most basic investigative tool of economics is the
a. concept of scarcity. b. mechanism of supply and demand. c. coordination and trade syndrome. d. inflation-unemployment trade-off. e. regulation of business.
The slope of the indifference curve is equal to the
A. Income of the consumer. B. Slope of the demand curve. C. Ratio of the price of one good to the price of the other good. D. Marginal rate of substitution.