Government intervention may achieve a more optimal outcome than the market mechanism when addressing
A. The supply of new hot dog stands.
B. Consumption of cigarettes.
C. Inefficient bureaucracy.
D. None of the choices are correct.
Answer: B
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If the U.S. Congress imposes a quota on imports of Japanese cars due to claims of "unfair" trade practices, and Japanese demand for American exports increases at the same time, then, in the long run ________, everything else held constant
A) the Japanese yen will appreciate relative to the U.S. dollar B) the Japanese yen will depreciate relative to the U.S. dollar C) the Japanese yen will either appreciate, depreciate or remain constant against the U.S. dollar D) there will be no effect on the Japanese yen relative to the U.S. dollar
Which of the following would shift the demand curve for gasoline to the right?
a. a decrease in the price of gasoline b. an increase in consumer income, assuming gasoline is a normal good c. an increase in the price of cars, a complement for gasoline d. a decrease in the expected future price of gasoline
Suppose the government increases spending on public education by $700 million and individual spending on private education drops by $500 million. This is an example of
A) incomplete crowding out. B) complete crowding out. C) zero crowding out. D) a and c E) none of the above
Social insurance programs partially replace income that has been lost due to the following, except:
A. Retirement B. Disabilities C. Temporary unemployment D. Resignation from a job