Soft budget constraints will lead to
a. inefficiency
b. quick responses to changes in supply and demand
c. good investment decisions
d. high product quality
e. managers eager to satisfy consumer demand rather than production quotas
A
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A new Mexican restaurant opens in the city of Manchester. The other restaurant owners are not happy about this new restaurant because they are experiencing what externality?
Refer to Table 2-4. What is the opportunity cost to Picnicland of increasing the production of hotdogs from 450 to 900?
a. 150 burgers b. 225 burgers c. 300 burgers d. 450 burgers
The country of Doomsville is currently in a recession. The government of Doomsville, in an effort to maintain its tax revenues in a time when incomes are falling, decides to increase the tax rate. Would this policy help or hurt the recession?
A) This policy would likely help Doomsville recover faster. B) This policy would likely make Doomsville's recession worse. C) This policy would likely have no effect on Doomsville's economy. D) This policy would have an unknown effect on Doomsville's economy.
The term "welfare state" describes the idea that:
A. government has a responsibility to promote the economic well-being of its citizens. B. some areas suffer from stagnant economic growth. C. some areas suffer a disproportionate amount of chronic poverty. D. None of these is true.