(Consider This) Unintended consequences leading to inefficient outcomes are more likely with government programs than in the private sector because:
A. in the private sector the invisible hand guides resources to their best uses when people
strive for efficiency.
B. government employees are systematically less competent than those in the private sector.
C. government has no real motive in allocating resources efficiently.
D. laws restrict government officials from considering effects of a policy outside the main
objectives of the policy.
Answer: A
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An increase in the number of fast-food restaurants
A) raises the price of fast-food meals. B) increases the demand for fast-food meals. C) increases the supply of fast-food meals. D) increases the demand for substitutes for fast-food meals.
When an economic event takes place, changes may ripple throughout the economy for months before monetary authorities begin to see changes in the data. This is known as the:
a) recognition lag. b) information lag. c) decision lag. d) implementation lag.