MAKEUP ECON EXAM
(CHART) Refer to the table above. At a price of $6, the weekly market quantity demanded for hamburger is: A. 17 B. 23 C. 18 D. 24
A
A Public good has which of the following traits? A. it is non-rival in consumption B. it is rival in consumption C. it is free to produce D. None of the above
A
A public good has which of the following traits? A. it is non-excludable in consumption B. it is excludable in consumption C. It is free to produce D. None of the above
A
According to the McConnell textbook, which is one of the five fundamental questions that need to be answered by any economic system? A. How will goods and services be produced? B. What keeps the rate of unemployment low? C. What level should interest rates be? D. How will the main political parties be organized?
A
If country A is growing at 7% real GDP growth annually, and country B is growing by 2% real GDP growth annually, how much longer will it take county B to double GDP, as compared to country A. A. Country B will take 25 years longer to double B. Country B will take 7 years longer to double C. Country B will take 30 years longer to double D. Country B will take 70 years longer to double.
A
If the aggregate consumption in an economy was always equal to disposable income, then A) the income-consumption graph would be the same was the 45% reference line B) the APC would equal 0 C) the APS would equal 1 D) All of the above
A
In a market system, resources will flow away from an industry when: A. Demand for the product made by the industry is decreasing B. Profits of firms in the industry are increasing C. The production of output in the industry is rising D. All the above
A
In the US and many other industrialized economies, growth rates in real GDP averaged higher levels over the period of 1995 through 2005 than they had averaged during several decades leading up to that point. Most Economists think the biggest factor driving this acceleration of growth was A. the tech boom led to successful formation of information technology companies like Google, Amazon, Yahoo, Facebook, and eBay among others. B. the fact that Dr. B entered the labor force in 1995. C. that literacy rates in the US rose dramatically between 1995 and 2005. D. none of the above.
A
In the United States, which component of the expenditures approach is often a negative number? A. Net Exports B. Gross Private Domestic Investment C. Government Spending D. All of the above
A
In the most severe parts of the recent Great Recession, what component of Unemployment went up the most compared to its previous rate? A. Cyclical unemployment B. Structural unemployment C. Frictional unemployment D. All of the above went up at relatively equal rates
A
In which of the following years did the US Federal Budget experience a surplus? A) 2000 B) 2005 C) 2010 D) 2015
A
Inflation refers to the process by which A. Goods and services become more expensive over time. B. Goods and services become less expensive over time. C. an economy increases their GDP over time. D. an economy experiences declines in their GDP over time.
A
Labor productivity in a country would tend to fall over time if A. literacy rates & technical skills training levels declined. B. many new investments were made in physical capital and older physical capital was well maintained. C. discrimination against women or minorities in the workplace was illegal and met with legal repercussions. D. All of the above
A
One major flaw with Say's Law, and a reason why it does not work perfectly in application is that A) Say's law ignores savings B) Say's law ignores demand C) Say's law ignores supply D) None of the above, Say's law always works perfectly in application
A
Per capita real GDP would be expected to rise as a result of increases in all of the following, except: A. Levels of underground economic activity B. Levels of education and literacy C. Levels of physical capital owned by the economies business sector D. Levels of valuable natural resources including energy, minerals, and environmental assets
A
Refer to the table above. The marginal propensity to save is: A) 0.25 B) 0.75 C) 0.8 D) 0.9
A
Since consumer spending generally falls during recessions, inventories held by firms: A. would tend to increase during recessions in cases where prices are sticky B. would tend to increase during recessions in cases where prices are fully flexible C. would tend to decline during recessions in cases where prices are sticky D. would tend to decline during recession in cases where prices are fully flexible.
A
Suppose that a nation can only make two products: housing and food. In a graph of the marginal benefit (MB) and marginal cost (MC) of housing, a leftward shift of the MB curve will cause the optimal quantity of: A. housing to decrease B. food to decrease C. both housing and food to decrease D. neither housing nor food to increase
A
The "rockets and feathers" phenomenon we discussed in class refers to what economic tendency? A) the idea that prices in general tend to rise more rapidly than they tend to fall B) the idea that unemployment rates tend to rise more rapidly than they tend to fall C) the idea that investment tends to rise more rapidly than it tends to fall D) supply creates its own demand
A
The Industrial Revolution is generally thought to have started in what country? A. Great Britain (The United Kingdom) B. United States C. China D. Italy
A
The cyclically-adjusted budget deficit as a percentage of GDP is 1 percent in year 1. It then became a deficit of 4 percent of GDP in year 2. It can be concluded from Year 1 to Year 2 that: A) Fiscal policy became more expansionary B) Fiscal policy became more contractionary C) GDP increased D) GDP decreased
A
The investment demand curve will shift to the left as the result of: A) General Business pessimism about future economic conditions B) Limited available productive capacity C) An increase in the real interest rate D) A decrease in the real interest rate
A
The upward slope of the short-run aggregate supply curve is based on the assumption that: A) input prices are rigid but output prices are flexible B) input prices are rigid and output prices are rigid C) input prices are flexible and output prices are flexible D) input prices are flexible and output prices are rigid
A
Which is of the following statements is correct? A. If demand increases, then the equilibrium price will increase B. If demand increases, then the equilibrium price will decrease C. If the price of a good increases, then demand will decrease D. If the price of a good decreases, then demand will decrease
A
Which of the following illustrates the idea of creative destruction? A. Digital downloads have undercut the market for CDs and DVDs B. A shirt purchased 10 years ago is badly worn out C. none of the above
A
Which of the following is NOT one of the major categories of economic resources directly used to produce goods and services? A. Money B. Land C. Labor D. Capital
A
Which of the following statements about modern economic growth is TRUE? A. It's most direct cause was the industrial revolution. B. It has affected all countries in the world in roughly similar ways. C. It led to large declines in life expectancy D. All of the above
A
Which of the following would best be classified as a complement for a consumer buying a new house? A. A mortgage loan B. Lumber, steel, and concrete. C. rental apartments D. all of the above
A
Which of the following would cause the multipler for consumer income shocks to increase? A) An increase in the MPC B) An increase in the MPS C) Both of the above D) None of the above
A
A Private good has which of the following traits? A. it is non-rival in consumption B. it is rival in consumption C. it is free to produce D. None of the above
B
A nation can produce two products: tanks and autos. The table below is the nation's production possibilities: Refer to the above table. As the nation produces more and more tanks, the opportunity cost of producing each additional tank, in terms of the foregone auto production: A. Remains constant B. Increases C. Falls D. Can't be measured from this information
B
Answer the question based on the above price and output data over a five-year period for an economy that produces only one good. Assume that year 1 is the base year. In year 3, real GDP would be: A. $20 B. $30 C. $60 D. $120
B
As a result of a decline in the price of gasoline, driving trips become more affordable, relative to the alternative of flying by airplane, so travelers more frequently drive. This is an illustration of: A. The income effect B. The substitution effect C. Rent Seeking D. Consumer sovereignty
B
Assume a government has a huge public debt that needs to be repaid. To handle the situation, the government decides to print a large amount of new currency to pay off the loans. This should lead to A. Demand-Pull deflation B. Demand-Pull inflation C. Cost-Push inflation D. Cost-Push deflation
B
Which of the following can lead to the outcome economists call 'government failure'? A. Rent Seeking behavior B. The Principle-Agent Problem C. Both of the above D. None of the above
C
Assume the MPS in an economy went from 0.15 to a new value of 0.25. In this case, the multiplier effect associated with initial changes in consumer spending will A) Rise to a higher value B) Fall to a lower value C) Remain at the same value D) Change in an unpredictable manner
B
Assuming no net migration occurs, and that life expectancy is stable, to keep the population of an economy stable, the total fertility rate (average number of births per woman in her lifetime) should be about: A. 4.2 children B. 2.1 children C. 5.1 children D. 1.2 children
B
Consumers "Dollar Votes" are the main determinant of answering which of the fundamental questions in a market economy? A. How is the output to be produced? B. What output will be produced? C. How can the economic system accommodate change? D. None of the above.
B
Given the expected rate of return on all possible investment opportunities in the economy, a ____________ in the real interest rate will tend to ___________ the level of overall investment. A) Increase, increase B) Decrease, increase C) Decrease, have no effect on D) Increase, have no effect on
B
Holding other things constant, a tax increase is associated with which of the following? A) Expansionary fiscal policy B) Contractionary fiscal policy C) Neutral fiscal policy D) None of the above
B
If the MPC is 0.9, then which of the following is true? A) the multiplier for consumer income is 5 B) the MPS is 0.1 C) Both of the above D) None of the above
B
If the cyclically-adjusted budget deficit and the actual budget deficit were the same, we could assume that: A) The rate of inflation was zero B) The economy was at full employment C) The MPC was zero D) The government had a balanced budget
B
In a competitive market shown above, for a price floor to be effective and alter the price, it must be set: A. At a price $15 B. Above the price of $15 C. Below the price of $15 D. It will alter the market outcome being set at any price level
B
In a market system, as one industry expands output while another contracts, resources will flow: A. Away from the expanding industry and towards the contracting one B. Away from the declining industry and into the expanding industry C. Towards the industry where the product demand is declining D. equally to both industries
B
In a market system, which of the following will eliminate high-cost producers, allowing only the low-cost producers to survive? A. Specialization B. Competition between firms C. Government taxation D. Government subsidies
B
In the Great Recession of 2007-2009, the aggregate expenditures schedule in the U.S. economy dropped, due in large part to: A) a large decline in consumer savings B) a large decline Investment expenditures C) a large decline in Government spending D) all the above
B
In the flow of income and spending, saving and investment are, respectively: A) An injection and a leakage B) A leakage and an injection C) Wealth and income D) Income and wealth
B
Inflation rates in the U.S. reached double-digits, and were relatively high compared to historical levels A. during the 1960's B. during the 1970's C. during the 1990's D. during the 2000's
B
Lauren makes $200 a day as a bank clerk. She takes two days off work, without pay, to fly to Miami to attend a concert. The cost of the flight is $150 and lodging is $100. The cost of the concert ticket is $40. The full opportunity cost of Lauren's decision to attend the concert is: A. $890 B. $690 C. $290 D. $40
B
Other things constant, if domestic consumers purchase more foreign goods and fewer domestically produced goods at each level of GDP in the short run: A) GDP will rise B) GDP will fall C) Foreign countries' GDP will rise D) There will be no change in GDP in this country
B
Over the course of the business cycle, a product like _____ should have stable sales because it is a ______ good, while a product like _______ should have sales that are less stable because it is a ________ good. A. Toothpaste, durable, automobiles, non-durable. B. Toothpaste, non-durable, automobiles, durable. C. Automobiles, durable, toothpaste, non-durable. D. Automobiles, non-durable, toothpaste, durable.
B
Refer to the above diagram of three demand curves for coffee. Which of the following would cause a shift in coffee demand from D1 to D2? A. A decrease in the input costs for resources used to produce coffee B. A scientific report stating that coffee improves life expectancy C. An increase in the input costs for resources used to produce coffee D. A scientific report stating that coffee leads to higher rates of cancer
B
Refer to the above graph. Line S is the current supply, while line S1 is the optimal supply from the society's perspective. If government corrects for this externality problem by taxing it, output in the market equals: A. A B. B C. C D. D
B
Refer to the graph above. Which of the following factors will shift AS1 to AS3? A) An increase in productivity B) An increase in input prices C) A decrease in business taxes D) A decrease in household indebtedness
B
Refer to the same table above. The marginal propensity to consume is: A) 0.25 B) 0.75 D) 0.8 D) 0.9
B
The cyclically-adjusted budget deficit in an economy is zero. If this economy goes into recession, then the actual government budget will become: A) Balanced B) a deficit C) a surplus D) Expanding
B
The difference between the maximum price a consumer is willing to pay for a product and the actual price the consumer pays is called: A. Consumer Utility B. Consumer Surplus C. Consumer Demand D. Consumer Preferences
B
The distribution of income in a market economy is a factor that resolves which of the following questions? A. What will be produced? B. Who will get the output? C. How will the output to be produced? D. How will the system accommodate change?
B
The majority of the increase in labor productivity over recent decades for workers in the USA is due to A. higher levels of taxes and lower levels of female labor force participation. B. advancements in technology and increased levels of capital. C. higher literacy rates. D. none of the above.
B
Under conventional definitions, which of the following persons WOULD be defined as unemployed? A. Sally is 30. She recently quit her job as a legal assistant to open her own restaurant. B. Sal is 26. He finished college 3 years ago and has been unsuccessfully looking for work since. C. Sam is 15. He attends high school full time and has no job. D. All of the above.
B
When the economy is at its equilibrium GPD level, all of the following occurs, expect: A) Aggregate expenditures = GPD B) Inventories will be zero C) Savings equals planned investment D) There are no unplanned changes in inventories
B
When there are positive externalities from producing a good, the private market left alone A. will not produce the good at all, due to the free rider problem B. will produce too little of the good C. will produce the efficient quantity of the good D. will produce too much of the good
B
Which factor helps explain the high variability of investment? A) The predictable regularity of innovation B) The durability of capital goods C) The consistency of consumer expectations D) The consistency of business profits
B
Which of the following factors could lead to long-term economic growth in a country? A. removing/abolishing private property rights B. protecting patents and copyrights C. teenagers more frequently dropping out of school to enter the labor force at early ages D. All of the above
B
Which of the following is NOT one of the 4 main components included in the calculation of GDP when one measures GDP using the expenditures approach? A. Net exports B. Corporate profits C. Personal consumption expenditures D. Government purchases
B
Which of the following is the best example of an investment that should NOT be placed into the calculation of GDP? A. Ford Motor Co. spends $60 million building a new manufacturing plant B. Susan purchases a share of Google stock C. A student pays the tuition due for the classes they are taking to earn their MBA degree D. A young couple purchases their first new home from a homebuilder.
B
Which of the following measures the changes in the prices of a "market basket" of some 300 goods and services purchased by typical urban consumers? A. The GDP Price Index B. The Consumer Price Index C. The Retail Trade survey D. The Wholesale Price Index
B
Which of the following would NOT be included in the calculation of GDP using the income approach? A. The salary earned by Jill in her job as a high school science teacher in a given year. B. The money spent by the government to provide housing vouchers to low income families. C. The corporate profits earned by Apple in a given year. D. The profits earned by Joe from the coffee shop he owns/runs in a given year.
B
Which will be observed in a city where binding rent control price ceilings are imposed on residential rents? A. housing units will be more frequently renovated B. A shortage of available units to rent C. A surplus of available units to rent D. none of the above
B
_________ countries are capable of higher/faster rates of growth than _______ countries, because they can __________ productive technologies. A. Follower, Leader, invent new B. Follower, Leader, adopt existing C. Leader, Follower, invent new D. Leader, Follower, adopt existing
B
(CHART) Based on cost-benefit analysis, Normal University should undertake: A. the Level Two alternative B. the Level Three alternative C. the Level Four alternative D. the Level Five alternative
C
A person's real income will increase by 2% if her nominal income: A. Increases by 5% while the price index falls by 3% B. Increases by 3% while the price index rises by 5% C. Increases by 5% while the price index rises by 3% D. Increases by 3% while the price index falls by 5%
C
A reduction in the demand for a product and an increase in the costs of inputs used to produce it would: A. Decrease the profits of producers B. Increase the equilibrium quantity supplied C. Decrease the equilibrium quantity supplied D. Cause a shortage of the product
C
All of the following outcomes/concepts can be viewed as a form of government failure, except: A. chronic budget deficits B. rent seeking C. taxing citizens and corporations to raise revenue to provide public goods D. government corruption
C
An economy characterized by high unemployment is likely to be: A) experiencing a high rate of economic growth B) Experiencing hyperinflation C) Experiencing a recessionary expenditure gap D) Experiencing an inflationary expenditure gap
C
Answer the question based on the above price and output data over a five-year period for an economy that produces only one good. Assume that year 1 is the base year. In year 3, nominal GDP would be: A. $20 B. $30 C. $60 D. $120
C
If the MPS is 0.20, the multiplier will be: A) 2 B) 3 C) 5 D) 10
C
If the real interest rate increases: A) The investment demand curve will shift to the right B) The investment demand curve will shift to the left C) There will be a movement upward along the investment demand curve D) There will be a movement downward along the investment demand curve
C
In general, economic research suggests that economies tend to A) consume more when National GDP increases B) save more when National GDP increases C) Both of the above D) None of the above
C
Net exports are negative when: A) Net exports exceed imports B) Depreciation exceeds exports C) Imports exceed exports D) Exports exceed imports
C
Refer to the above supply and demand graph of Product X. What would happen if the government subsidized the producers of this product because it had positive externalities in production? A. Supply would decrease B. Demand would decrease C. Supply would increase D. Demand would increase
C
Refer to the graph above. At equilibrium, consumer surplus is equal to: A. b + a B. b + c C. a D. c
C
Say's law in classical economics suggests that, over a period of time: A) Aggregate spending would tend to exceed total output and income B) Aggregate spending would tend to fall short of total output and income C) Aggregate spending would tend to equal total output and income D) Aggregate spending would tend to deviate from total output and income
C
The American Recovery and Reinvestment Act of 2009 included mostly: A) Increases in taxes and increases in government spending B) Decreases in taxes and decreases in government spending C) Increases in government spending and decreases in taxes D) Decreases in government spending and increase in taxes
C
The CPI stands for the _________, and this measure is used to compute_________ A. Customer Processing Information, the interest rate. B. Constant Price Index, the interest rate C. Consumer Price Index, the inflation rate. D. None of the above.
C
The immediate-short-run aggregate supply curve is __________, while the short-run aggregate supply curve is ___________: A) Vertical, downward-sloping B) Horizontal, downward-sloping C) Horizontal, upward-sloping D) Vertical, upward-sloping
C
The production possibilities curve is concave with respect to the origin A. because the opportunity cost of producing most goods is zero B. because the society can produce more of both goods simultaneously C. because of resource specialization D. because the society is capable of producing only one of the goods and not the other
C
The slope of the long-run aggregate supply curve is based on the assumption that: A) input prices are rigid but output prices are flexible B) input prices are rigid and output prices are rigid C) input prices are flexible and output prices are flexible D) input prices are flexible and output prices are rigid
C
To an Economist, saying the Economy is at the "Natural Rate of Unemployment" means A. cyclical unemployment is negative. B. the economy is falling short of "full employment". C. all current unemployment comes from frictional and structural unemployment. D. all of the above
C
Using currently reported data, the expression C + Ig + G + Xn could be used by the BEA or other persons to most directly accomplish what task? A. calculate real GDP using the income approach B. calculate nominal GDP using the income approach C. calculate nominal GDP using the expenditures approach D. calculate real GDP using the expenditures approach
C
When an economist says people are "rational" or "self-interested", which of the following most closely represents the claim they are making? A. decision makers in the economy always agree with one another B. decision makers in the economy never make mistakes they later regret C. decision makers in the economy are not acting randomly, they are trying to maximize their utility D. decision makers in the economy never agree with one another
C
Which of the following illustrates the law of demand? A. A decrease in the price of tacos causes sellers to want to sell less B. An increase in the perceived health benefits of oranges causes buyers to buy more oranges C. An increase in the price of egg rolls causes a decrease in the quantity of egg rolls demanded
C
Which of the following should NOT be counted when estimating GDP using the expenditures approach? A. A new car purchased by the Smith family. B. A meal out at their favorite restaurant purchased by the Jones family. C. An air-conditioning unit purchased by a home builder, which is placed into one of their new homes. D. All of the above should be counted
C
Which pair of countries had the highest growth rates in real per capita GDP between 1960 and 2010? A. Mexico and Argentina B. Great Britain and France C. South Korea and Japan D. Kenya and Zimbabwe
C
Without a change in discretionary fiscal policy, if the economy goes into recession, then the: A) Cyclically-adjusted deficit and the actual deficit would both increase B) Cyclically-adjusted deficit and the actual deficit would both decrease C) Cyclically-adjusted deficit would stay the same while the actual deficit would increase D) Cyclically-adjusted deficit would increase while the actual deficit would stay the same
C
You read a report saying nominal GDP in Soonerville doubled over the last 20 years, but that the economy also experienced inflation over the same period. Soonerville's nominal growth rate for this period should be ______, and the average real growth rate over the period should be ______. A. approximately 7%, lower than 7% B. approximately 7%, higher than 7% C. approximately 3.5%, lower than 3.5% D. approximately 3.5%, higher than 3.5%
C
An investment demand curve shows the varying amounts of investment that would be undertaken at various levels of: A) The CPI B) Net Exports C) Nominal GDP D) The real interest rate
D
Answer the question based on the above data over a five-year period for an economy that produces only one good. Assume year 1 is the base year. The inflation rate that occurred between years 3 and 4 is A. 5% B. 10% C. 15% D. 25%
D
Answer the question based on the following supply and demand schedules in units per week for a product. Refer to the above table. If the government introduced a guaranteed price floor of $50 and agreed to purchase any surplus output, then the government's purchase of the surplus would be: A. 10 units per week B. 60 units per week C. 100 units per week D. 200 units per week
D
Consumer surplus occurs in a market because: A. At the current market price, quantity supplied is greater than quantity demanded B. At the current market price, quantity demanded is greater than quantity supplied C. The market price is more than what some consumers are willing to pay for the product D. The market price is less than what some consumers are willing to pay for the product
D
For a good that is non-excludable, if left alone, market production of the good will fall short of the efficient level of production due to the A. the government failure problem B. the rent seeking problem C. the median voter problem D. free rider problem
D
If GDP exceeds aggregate expenditures in a private closed economy: A) Injections will exceed leakages B) Planned investment will exceed savings C) Planned investment will exceed actual investment D) Saving will exceed planned investment
D
If a countries nominal GDP goes up by 9% during a year where inflation was 3%, then real GDP: A. Decreased by 6% B. Decreased by 3% C. Increased by 3% D. Increased by 6%
D
If an Economies price level falls during a year, we would say the economy is experiencing: A. Inflation B. High interest rates C. Low unemployment rates D. Deflation
D
If businesses feel more optimistic about the state of the economy, then this change is likely to: A) Cause of movement up the investment demand curve B) Cause a movement down the investment demand curve C) Shift the investment demand curve to the left D) Shift the investment demand curve to the right
D
In an economy, the total expenditures for a market basket of goods in year 1 (the base year) was $5,000 billion. In year 2, the total expenditure for the same market basket of goods was $6,000 billion. What was the GDP price index for the economy in year 2? A. 90 B. 100 C. 110 D. 120
D
Nominal GDP differs from real GDP because: A. Inflation typically occurs over time in the economy B. Nominal GDP is based on current prices C. Real GDP is based on inflation adjusted prices D. All of the above
D
Refer to the same table above. The multiplier associated with this autonomous increase in investment is A) 2.0 B) 2.5 C) 3.0 D) 4.0
D
The antigrowth view accurately reflects that extremely high rates of economic growth A. do not cause problems including homelessness, discrimination, and poverty to go away. B. tend to be accompanied by higher levels of pollution and degradation of the environment. C. may not be sustainable in the long run. D. all of the above.
D
The immediate short-run aggregate supply analysis assumes that: A) Input prices are fixed while output prices are flexible B) Input prices are flexible while output prices are fixed C) Both input and output prices are variable D) Both input and output prices are fixed
D
The law of supply states that when: A. the quantity supplied falls, the quantity demanded rises. B. the price of a good goes down, the demand of the good goes down. C. the price of a good goes down, the demand of the good goes up. D. the price of a good goes down, the quantity supplied also falls.
D
The long-run aggregate supply curve is: A) Upward-sloping and becomes steeper at output levels above the full-employment output B) Upward-sloping and becomes flatter at output levels above the full-employment output C) Horizontal D) Vertical
D
The term dollar votes in a market system means: A. Inflation will occur if consumers don't spend wisely B. Voters may be offered dollars to help elect certain political candidates C. Government is responsible for determining what will be considered legal tender D. Consumers "vote" for different products based on how they spend their incomes
D
Which of the following factors do economists believe contribute to business cycles occurring? A. Political Events (wars, international trade deals, and so on). B. Irregular Innovation C. Unexpected demand shocks in the presence of "sticky" prices D. All of the above
D
Which of the following factors will decrease the current demand for a product? A. A decrease in the current price of a substitute product B. An expected decrease in the future price of the product C. An increase in the current price of a complementary product D. All of the above.
D
Which of the following has been identified as a "shortcoming" of GDP in terms of its use as an aggregate indicator of the well being of a society? A. GDP fails to incorporate the value of environmental resources B. GDP ignores nonmarket activities including valuable services provided by stay-at-home parents and retirees C. GDP ignores the depletion of natural resources over time D. all of the above
D
Which of the following is a good example of an automatic stabilizer for the economy? A) Unemployment benefits are paid to individuals who recently lost their jobs B) When salaries & wages rise, the government collects more tax revenues C) When salaries & wages fall, the government collects less tax revenues D) All the above
D
Which of the following is an example of an economic investment occurring? A. Albert buys a new truck to use in his landscaping business B. The University of Oklahoma builds a new student dormitory C. Connie purchases a new copy machine for her company's office facility D. All of the above
D
Which of the following would be an example of government intervention to correct a market failure? A. Taxing pollution generating production activities B. Operating the local public school system C. Taxing citizens to raise general revenues to then provide public goods D. All of the above
D
