A rationale for government involvement in a market economy is
a. markets sometimes fail to produce a fair distribution of economic well-being.
b. markets sometimes fail to produce an efficient allocation of resources.
c. property rights have to be enforced.
d. All of the above are correct.
d
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How does rent control tend to cause persistent imbalances in the market for housing?
a. Quantity demanded exceeds quantity supplied but price cannot rise to remove the shortage. b. Quantity demanded exceeds quantity supplied but price cannot fall to remove the surplus. c. Quantity supplied exceeds quantity demanded but price cannot rise to remove the shortage. d. Quantity supplied exceeds quantity demanded but price cannot fall to remove the surplus.
If some resources used in the production of a good are only available in limited quantities, then the long run market supply curve will be perfectly elastic
a. True b. False Indicate whether the statement is true or false
Special interest groups are a determent to the political process.
A. True B. False C. Uncertain
The conventional fiscal policy to fight inflation would be to
A. increase the rate of monetary growth. B. decrease the rate of monetary growth. C. run a government surplus. D. run a government deficit.