The market
A. Always provides the optimal mix of goods and services.
B. On its own may not always provide the optimal mix of goods and services.
C. Always provides a better mix of goods and services without government intervention than it does with government intervention.
D. May not produce the optimal mix of output, which is known as government failure.
Answer: B
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Other things remaining unchanged, a decline in imports is associated with an increase in gross domestic product
a. True b. False Indicate whether the statement is true or false
If an excise tax is imposed on shoes,
a. government tax revenue will fall b. the market price of shoes will decrease c. the supply curve will shift downward d. the equilibrium quantity demanded will decrease e. the equilibrium quantity supplied will increase