The doctrine of laissez faire is based on the belief that
A. Government directives are likely to do a better job of allocating resources than markets.
B. Markets result in an unfair distribution of income.
C. Markets are likely to do a better job of allocating resources than government directives.
D. Government failure does not exist.
Answer: C
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Along a straight-line, slanted demand curve,
a. the price elasticity is constant. b. the price elasticity varies along the line. c. the price elasticity is the same as slope. d. the price elasticity cannot be measured.
Because demand curves slope downward according to the Law of Demand, the price elasticity of demand is a negative number
What will be an ideal response?
To determine the total change in deposits as a result of an injection of reserves, we must
a. sum the number of loans a bank has made b. multiply the injection of reserves by 10 c. multiply the number of loans by the expenditure multiplier d. sum the reserves of each bank e. multiply the injection of reserves by the demand deposit multiplier
Financial disintermediation occurs when:
a. Individuals no longer trade securities in the secondary market. b. Individuals withdraw funds from financial intermediaries and invest them elsewhere. c. Businesses no longer borrow directly in the bond market. d. All of the above.