Which of the following would be an example of government intervention to correct a market failure caused by buyers having inadequate information about sellers?
A. Providing unemployment compensation insurance
B. Sponsoring legislation to reduce pollution
C. Licensing of medical doctors and surgeons
D. Requiring all car drivers to buy auto insurance
C. Licensing of medical doctors and surgeons
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The income elasticity of demand for food is roughly 1. A consumer's monthly income is $2,000, of which 20% is spent on food. If the income of this consumer doubles, the amount she'll spend on food will be
A. $800 per month. B. $1,000 per month. C. $500 per month. D. $400 per month.
In the U.S., the poverty line is set at __________ times the Department of Agriculture’s minimum food budget.
a. four b. three c. two d. one
Studies of 18th century colonial demographics indicate that
a. the population growth rate of blacks was similar to that of whites. b. migration was the main reason for the growth in the black population. c. the death rate of blacks were much higher than the death rate of whites. d. the birthrate of blacks was much lower than the birthrate of whites.
Does voluntary exchange create wealth (value)?
What will be an ideal response?