The phenomenon which occurs when markets do not produce the most efficient outcome on their own is known as:
A. public goods.
B. imperfect information.
C. market failure.
D. economic certainty.
Answer: C
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Why are corporate executives are often guaranteed "golden parachutes" if they should be fired?
a. To give them the incentive to take the higher levels of risk desired by stockholders. b. To ensure that they exercise great caution in spending stockholders' money. c. To encourage the most experienced people to apply for the executive positions. d. To provide a signal to the public that the firm is on solid financial ground.
Starting from long-run equilibrium, a large tax cut will result in a(n) ________ gap in the short-run and ________ inflation and ________ output in the long-run.
A. expansionary; higher; higher B. expansionary; higher; potential C. recessionary; higher; potential D. recessionary; lower; lower
Who regulates the quantity of money circulating in the economy?
A) the Federal Reserve B) the banking system C) the U.S. Congress D) the President of the United States E) The U.S. Congress and the President share the control.
Which of the following is NOT a contributor to an employee's attitude?
a. previous jobs b. education c. peers d. family