When the invisible hand does not produce optimal outcomes for the economy, there is evidence of
A. Government failure.
B. Market failure.
C. Macroeconomic failure.
D. Scarcity.
Answer: B
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Suppose that the population is 275 million. Also assume that the labor force is 135 million and that 130 million people are employed. Calculate the unemployment rate
What will be an ideal response?
Assume health insurance is provided universally by the government. This would
A) force every taxpayer to bear the costs of adverse selection. B) force every taxpayer to bear the costs of moral hazard. C) force the government to deal with adverse selection problems. D) force foreign governments to deal with moral hazard problems.
The U.S. tax code
a. all of the reasons given as answers b. to social engineer c. to raise revenue for government spending d. is used to help politicians get elected.
A country will specialize in the good for which
A) it has absolute advantage. B) it has moderate production costs. C) it can produce at minimum average cost. D) it has comparative advantage.