Ch 5 Review Questions

In a market economy, the government's power to coerce can:

The government of Southland wants to improve resource allocation in the country. Which of the following actions by the Southland government is most likely to accomplish this?

In what way, if any, does the invisible hand affect government resource allocation?

Government officials tend to make:

As it relates to corporations, the principal-agent problem is that:

As it relates to the political process, the principal-agent problem results from the:

The idea of government failure includes all of the following except:

Suppose American winemakers convince the federal government to issue a directive to serve only domestically produced wine at government functions. This would be an example of:

Which of the following impacts would economists expect to result from chronic budget deficits?

The U.S. Federal Reserve, the Bank of Japan, the Bank of England, and the European Central Bank are all in charge of what for the countries they represent?

In a sporting goods store, you can buy the equipment you want and forgo the rest. But in an election you "buy" the entire range of the candidate's positions, including some you may not agree with. This difference:

"Earmarks" refer to:

Which of the following would be the best example of regulatory capture?

Which of the following will tend to socialize losses and privatize gains?

From an economist's perspective, when is government too big?

Government passes a law requiring all domestic clothing factories to pay workers at least $20 per hour. As a result, domestic clothing companies move their operations overseas, leaving domestic workers unemployed. This situation illustrates the problem of: