Which of the following statements is inaccurate?
A. Voters are quick to blame government meddling for many economic woes.
B. There is substantial agreement about whether government improves market outcomes.
C. Ideally, the market mechanism will lead an economy to the optimal mix of output.
D. There is substantial agreement about how and when markets fail.
Answer: B
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A decrease in the real money supply can result from:
A) increase in the nominal money supply or an increase in the price level. B) increase in the nominal money supply or a decrease in the price level. C) decrease in the nominal money supply or an increase in the price level. D) decrease in the nominal money supply or a decrease in the price level.
The price elasticity of demand for a printer is estimated to be 1 . This means that an increase in price by 10% will
a. Increase quantity demanded by 10% b. Decrease quantity demanded by 10% c. Increase demand by 10% d. Decrease demand by 10%
There are two states of the world. In state one the person receives one hundred dollars. In state two the person receives fifty dollars. If the person is rational and their expected return is $87.50, then the probability with which state one occurs must be
a. 0.25. b. 0.50. c. 0.75. d. 1.00.
In the long run, import quotas increase net exports
a. True b. False Indicate whether the statement is true or false