Competitive markets generally give consumers and producers correct incentives when
a. externalities are present in the market.
b. property rights are well-defined and enforced.
c. the good being produced and consumed is a pure public good.
d. there is a substantial lack of information on the part of either buyers or sellers.
B
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Which of the following is NOT a government-run income maintenance program?
A) Social Security B) unemployment compensation C) temporary Assistance of Needy Households D) life insurance
The Glass-Steagall Act was designed to
A) legally separate investment banking from commercial banking. B) promote mergers in the banking industry. C) impose high capital ratios on investment banks. D) promote the interests of community banks.
The most likely explanation of the recession of 1981-1982 was
A) an increase in energy prices. B) a collapse in investment spending. C) that it was an unfortunate byproduct of a decrease in inflation. D) a dramatic decrease in stock prices.
The national defense of the United States is not rival because
a. my enjoyment of the national defense does not diminish your enjoyment of the national defense of the United States. b. my enjoyment of the national defense does diminish your enjoyment of the national defense of the United States. c. once the nation is defended, it is impossible to prevent any single person from enjoying the benefit of this defense. d. once the nation is defended, it is possible to prevent any single person from enjoying the benefit of this defense.