The idea that new policies change the economic rules and affect economic behavior, so that no one can safely assume that historical relationships between variables will hold when policies change, is known as
A. Say's Law.
B. the Lucas critique.
C. the equation of exchange.
D. Okun's Law.
Answer: B
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If a legal ceiling price causes the quantity of a good demanded to be greater than the quantity supplied
A) competition among both buyers and sellers is prevented. B) competition among buyers is prevented. C) competition among sellers is prevented. D) competition among buyers will raise the nonmonetary costs of obtaining the good.
Tariffs are different from quotas because they
a. increase government revenue. b. increase profits. c. increase the quantity traded. d. place all the burden on foreigners.
Describe five major sources of government failure
Please provide the best answer for the statement.
Country X has a high unemployment rate. It follows that country X is operating
What will be an ideal response?