Government intervention always results in the optimal mix of output.

Indicate whether the statement is true or false.

Ans: False

Government intervention sometimes results in worsening the situation, rather than improve the situation.

Economics

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Esther wants to buy a used car from her neighbor, who quotes a price of $18,000. Esther negotiates with her neighbor and offers him $16,500 for the car. This is an example of ________

A) bilateral bargaining B) collective bargaining C) arbitration D) speculation

Economics

Which of the following observations would be valid if the Gini coefficient is equal to zero?

a. Perfect income inequality b. Greater degree of income inequality c. Lorenz curve overlaps the line of perfect income equality d. Unequal distribution of income

Economics