Government failure is likely to occur for all of the following reasons except:
A. intervention in markets is always simpler than it initially seems.
B. special interest groups might lobby government to the detriment of the public good.
C. the bureaucratic nature of government intervention does not allow fine-tuning.
D. individuals have better information about a situation that affects them than does government.
Answer: A
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Budget lines are drawn on a diagram with the
A) price of the good on the vertical axis and its quantity on the horizontal axis. B) price of one good on the vertical axis and the price of another good on the horizontal axis. C) quantity of the good on the vertical axis and its price on the horizontal axis. D) quantity of one good on the vertical axis and the quantity of another good on the horizontal axis.
In poorer countries, free trade ________ the demand for labor in these countries and ________ the wages paid in these countries
A) decreases; lowers B) decreases; raises C) increases; lowers D) increases; raises
Suppose the market demand curve for pizza can be expressed as QD = 100 - 2P + 3Pb, where QD is the quantity of pizza demanded, P is the price of pizza, and Pb is the price of a burrito
What is the relationship between burritos and pizza, from the point of view of consumers? A) They are independent. B) They are complements. C) They are substitutes. D) Not enough information to answer the question.
The demand for an input will be more inelastic when
A) the demand for the product being produced is elastic. B) the cost of the input is a relatively large percentage of total production costs. C) the time period being considered is relatively long. D) it is difficult to substitute other inputs for this input.