List four sources of market failure
What will be an ideal response?
(1.) Imperfect competition
(2) Externalities.
(3.) Production of public goods.
(4.) Imperfect information.
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Which of the following would have the greatest positive impact on a country's domestic economy?
A) An increase in spending on imports from other countries. B) An increase in spending by foreigners on the country's exports. C) A decrease in the confidence of foreign investors in the country's economy. D) A decrease in the incomes of consumers in foreign countries.
After a shift from AD0 to AD1, which of the following patterns of adjustment is consistent with the "Price Fooling" model?
A) A to B to E B) A to F to E C) A to C to E D) A to C to A
In the long run if there is a shortage in the market for a product, the guiding (allocation) function of price can be expected to cause
A) an increasing shift in the demand for the product. B) a decreasing shift in the demand for the product. C) an increasing shift in the supply of the product. D) a decreasing shift in the supply of the product.
The Shadow Open Market Committee, a group of economists with the Monetarist point of view, calls for a reduction in the money supply. They must be concerned about ________.
A. rising rates of inflation B. new technological breakthroughs that might increase the growth rate of real GDP C. falling levels of real GDP D. high levels of unemployment