In a situation where a market failure occurs,
A. any government intervention will improve on the market outcome.
B. there is nothing that the government can do to improve on the market outcome.
C. government intervention might improve on the market outcome.
D. it will always be preferable to have the government intervene in the market.
C. government intervention might improve on the market outcome.
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Which of the following is not a thrift?
A) a savings-and-loan B) a commercial bank C) a credit union D) a mutual savings bank
In the recent Global Economic Crisis, all of the following are causes that pushed the IS curve to the left EXCEPT
A) the negative wealth effect from the collapse of the housing bubble. B) the end of cash-out mortgage refinancing. C) growing unwillingness of banks and nonbank financial institutions to grant loan. D) slow and minimal response of the U.S. government.
As a way to still be able to transact with the low-risk individuals, insurance companies can
a. Offer them partial insurance b. Offer them insurance with deductibles c. Offer them insurance with co-payments d. All of the above
If the marginal cost of producing the fifth unit of output is higher than the marginal cost of producing the fourth unit of output, then at five units of output, average total cost must be rising
a. True b. False Indicate whether the statement is true or false