_________________: Presence of govt causes too much/not enough of a good to be produced.
Fill in the blank(s) with the appropriate word(s).
Ans: Govt Failure
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When two or more individuals own a business that does not have a legal existence separate from that of the individuals, it is known as a
a. joint proprietorship. b. multi-owner corporation. c. partnership. d. cooperative.
An economy producing at an interior point of its production possibility frontier is ___
a. efficient, the economy is producing the highest possible quantities of all the goods b. inefficient, because resources are not full employed. c. efficient, because the economy is producing goods at the lowest possible cost d. inefficient, because that combination of goods could be produced at a lower cost if more efficient technology were employed
Average costs
a. fall at all levels of output b. are falling when marginal costs are below average costs and rising when marginal costs are above average costs c. are falling when marginal costs are above average costs and rising when marginal costs are below average costs d. does not vary with output
Government debt is not a problem as long as the:
a. Assets a government purchases increase national productivity by an amount less than the private sector. b. Government spends the funds on consumption goods rather than investment goods, because consumption goods do not have to be amortized. c. Government can borrow from foreigners. d. Government can print money and repay the debt any time it wants. e. Nation's equity level is rising.