The two most important rationales for government intervention in non-monopolistic markets are
A) market failure and asymmetric information.
B) substandard products and job creation for public employees.
C) job creation and income maintenance.
D) unfair pricing and usury.
Answer: A
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Define the tragedy of the commons. Give three examples of common resources. Briefly explain why common property resources are subject to overuse
What will be an ideal response?
Purchasing power parity does not hold in the short to medium run because
A) exports don't equal imports. B) exchange rates fluctuate too much. C) most business cycles are caused by shocks to aggregate demand. D) countries produce different goods.
To what can we attribute the relatively high population growth in colonial America, compared with growth in England?
(a) The relatively advanced medicine in the colonies (b) Better climate, food and water (c) Better hygiene and preventive care (d) All of the above
A line that represents combinations of two goods that a consumer can purchase with a fixed income and given price for each good is called the:
a. indifference curve. b. demand curve. c. budget line. d. money line.