When a government intervenes in an economy in a way that influences the relationship between households and businesses, it is:
A. serving the public good.
B. reducing social welfare by interfering with the invisible hand.
C. serving as an economic actor.
D. serving as an economic referee.
Answer: D
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In recent years the life insurance industry has emphasized
A) whole life policies. B) group insurance. C) less risky investments. D) the purchase of short-term assets.
Which of the following is an example of a public good?
A) an apple B) a street light C) ketchup D) a car
The optimal mix of output is the most desirable combination of output attainable with existing
A. Technology and business decisions. B. Resources, technology, and social values. C. Resources, government regulations, and technology. D. Resources and products.
Which of the following is NOT an economic good?
A. broccoli B. garbage C. a textbook D. a haircut