An essential economic role of government, even in the absence of "market failure," is
A. provision of free public education.
B. operation of the postal service.
C. enforcement of contracts between buyers and sellers.
D. ownership of key modes of public transportation.
Answer: C
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The first and biggest problem the EU faces in its expansion to the east is
A) the reform of its agricultural subsidy programs. B) the lack of democracy in the countries that are most likely to become members. C) the unwillingness of the new members to adopt EU rules. D) the lack of market economies in the countries that are most likely to become members. E) the unwillingness of citizens in the new member countries to migrate to higher income countries.
If a linear supply curve has a zero intercept, the elasticity of supply is always unitary
What will be an ideal response?
If the demand for a product falls and the supply stays the same
A) the market clearing price will fall and the equilibrium quantity will rise. B) the market clearing price will rise and the equilibrium quantity will fall. C) both the market clearing price and the equilibrium quantity will fall. D) both the market clearing price and the equilibrium quantity will rise.
The condition under which a cartel can maintain its stability is that:
a. the barriers to entry should be relaxed. b. an identical product should be produced by the colluding firms. c. there should be a large number of firms in a market. d. there should be legal barriers to share agreements. e. the products of the colluding firms should be highly differentiated.