What is ‘market failure'? Explain one way in which government can help overcome such failure
What will be an ideal response?
Market failure is defined in the text. The student may choose from among ways to overcome market failure such as providing information, regulating monopoly, providing public goods, etc.
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Figure 36-5
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Which of the graphs in Figure 36-5 are consistent with an appreciation of the U.S. dollar caused by an increase in U.S. interest rates?
A. 1 B. 2 C. 3 D. 4
The original impetus for Social Security was
A) to provide retirement fund for all persons. B) to prevent future depressions. C) the result of social engineering by politicians. D) a proper response to the stock market crash of 1929.
A shortage occurs whenever
a. quantity demanded exceeds quantity supplied at the equilibrium price b. price is less than equilibrium price c. quantity demanded is less than quantity supplied d. goods are scarce e. some of the people who need the product are not willing and able to buy it at the equilibrium price
Purchases of stocks and bonds are examples of investment spending
a. True b. False