The market mechanism leads to underproduction of public goods because the supply of public goods is hidden.
Answer the following statement true (T) or false (F)
False
The market mechanism leads to underproduction of public goods because everyone would wait for someone else to pay.
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Who was the author of the following prediction: in the absence of a system for enforcing order in society, life will be "solitary, poor, nasty, brutish, and short"?
A) Thomas Hobbes B) John Maynard Keynes C) Thomas Kuhn D) Jean-Jacques Rousseau E) Adam Smith
The legislation that overturned the prohibition on interstate banking is
A) the McFadden Act. B) the Gramm-Leach-Bliley Act. C) the Glass-Steagall Act. D) the Riegle-Neal Act.
Which of the following is not a way in which high inflation reduces productivity?
a. High rates of inflation increase menu costs. b. Rapid inflation destroys work incentives and encourages speculation. c. Variable rates of inflation create insecurity. d. High inflation rates also have the power to deteriorate international competitiveness. e. High rates of expected inflation increase the real interest rate and thus reduce investment.
The original (1958 ) Phillips curve
A) showed that stagflation is inevitable. B) showed the tradeoff between the use of monetary and fiscal policy. C) has never been used as an important economic policy tool. D) suggested a tradeoff between wage inflation and the unemployment rate. E) none of the above