Most economists believe that:
A. a policy decision must weigh the costs of market failure against the costs of government failure.
B. government cannot correct failures of market outcome.
C. a government policy designed to correct the failure of a market outcome is always more desirable than living with the failure.
D. it is always better to change the price structure by subsidizing goods than to openly give money to individuals to achieve distributional goals.
Answer: A
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The uncertainty and ambivalence surrounding government policies toward competition stems from
A) conflict between the goals of preserving competition and protecting competitors. B) the influence producers are able to exert on agencies charged with enforcing laws governing business practices. C) uncertainty about the actual effects of various measures intended to promote competition. D) all of the above. E) none of the above but from uncertainty about federal, state, or local jurisdiction.
When asset prices increase above their fundamental values it is called an
A) asset-price bubble. B) irrational bubble. C) asset-price spike. D) irrational spike.
A decrease in the money supply
a. lowers the interest rate, causing a decrease in investment and a decrease in GDP. b. lowers the interest rate, causing a decrease in investment and an increase in GDP. c. raises the interest rate, causing an increase in investment and a decrease in GDP. d. raises the interest rate, causing an increase in investment and an increase in GDP. e. raises the interest rate, causing a decrease in investment and a decrease in GDP.
Susan is trying to decide whether to quit her $20,000 per year job so she can return to college next year as a full time student. If she goes to college next year, her books and supplies will cost $500, tuition will cost $3,000, and her other expenses (transportation, housing, and food) will increase by $2,000. What is Susan's opportunity cost of attending college next year?
A) $5,500 B) $3,000 C) $25,500 D) $3,500