Which of the following is an imperfection of market economies?
A. They produce inexpensive services but expensive manufactured goods.
B. They place undue importance on the needs of future generations.
C. They cannot provide certain goods such as national defense.
D. They distribute income too unequally.
Answer: D
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If the government sets out to make home buying easier for more people by forcing lenders to accept ____________ down payments and ______________ interest rates, the result will likely be a(n) _______________ in housing prices
A) lower; lower; increase B) higher; higher; increase C) lower; higher; decrease D) higher; lower; decrease
Tom and Jerry have two tasks to do all day: make dishes and build fences. If Tom spends all day making dishes, he will have make 16 dishes. If he instead devotes his day to building fences, Tom will build 4 fences. If Jerry spends his day making dishes, he will make 14 dishes; if he spends the day building fences, he will build 7 fences. The opportunity cost of one fence is ________ for Tom and ________ for Jerry. Therefore Tom should specialize in ________.
A. 4 dishes; 2 dishes; dishes B. 16 dishes; 14 dishes; fences C. 16 dishes; 14 dishes; dishes D. 4 dishes; 2 dishes; fences