Government failure occurs when government intervention fails to improve economic outcomes or makes them worse.
Answer the following statement true (T) or false (F)
True
In such a case, the market outcome would be preferred to government intervention.
Economics
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The amount of consumption expenditure that takes place when income is zero is
A) called induced consumption. B) called zero-based consumption. C) equal to zero. D) called autonomous consumption. E) equal to saving.
Economics
To combat a recession with discretionary fiscal policy, Congress and the president should
A) decrease taxes to increase consumer disposable income. B) decrease government spending to balance the budget. C) lower interest rates and increase investment by increasing the money supply. D) raise taxes on interest and dividends, but not on personal income.
Economics