What is government failure?
What will be an ideal response?
Government failure occurs when the government becomes the tool of the rent seeker and the allocation of resources is made even less efficient by the intervention of government.
Economics
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If an individual uses money from a demand deposit account to purchase a U.S. savings bond
A) M1 decreases and M2 stays the same. B) M1 stays the same and M2 increases. C) M1 stays the same and M2 stays the same. D) M1 decreases and M2 decreases.
Economics
A consumer's budget line for food (F) and shelter (S) is represented as F = 250 - 5S. If the price of shelter increases by 2 and consumption of shelter remains constant at 20, how will consumption of food change?
A) decrease by 10 B) decrease by 20 C) decrease by 40 D) decrease by 60
Economics