Government failure
A. leads to a more efficient allocation of resources.
B. leads to a less efficient allocation of resources.
C. occurs because government officials do not act in their own self?interest.
D. occurs because households or firms do not act in their own self?interest.
Answer: B
You might also like to view...
Compared to the free-market outcome, if the production of wheat were subsidized by the government,
A) the supply of wheat would increase. B) the quantity supplied of wheat would increase. C) the quantity demanded of wheat would increase. D) all of the above would occur. E) none of the above would occur.
Justine is an artist. In 2003, she produced 15 paintings and sold all 15 . In 200 . she produced 14 paintings and sold 11 . In 2005, she produced 16 paintings and sold 18 . Explain how many of Justine's paintings would be counted as part of gross private domestic investment in each of these three years
Suppose a tax cut affects aggregate demand and aggregate supply. Which of the shifts raise the price level?
a. both the shift of aggregate demand and the shift of aggregate supply b. the shift of aggregate demand, but not the shift of aggregate supply c. the shift of aggregate supply, but not the shift of aggregate demand d. neither the shift of aggregate demand nor the shift of aggregate supply
A common solution to the free-rider problem is for
a. government to subsidize consumption of the good. b. government to provide the good and then pay for its production through taxation. c. government to provide vouchers to consumers of the good.