Sheet 1 - Introduction to Macroeconomics Tutorial Sheet One...

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Introduction to Macroeconomics Spring 2011 Tutorial Sheet One The Economic Role of the Government Question One: 1. Which of the following would an economist classify as a public good? a. Street lighting b. Health care c. Seat belts in cars d. Public libraries 2. In a market economy, the market mechanism can achieve all the following except a. causing supply to respond to changes in demand b. signaling changes in consumer tastes c. ensuring a fair distribution of all types of good d. eliminating excess supply and demand 3. When a good generates an externality in the market a. The good's price reflects the externality b. Someone is affected who is not involved in the buying or selling of the good c. Government intervention can never improve the market's performance d. Society's scarce resources are allocated efficiently 4. Government's role in a modern economy is to; a. Ensure efficiency b. Correct an unfair distribution of income c. Promote economic growth and stability d. All the above 5. Many governments subsidize primary research because it often benefits all citizens, even those who are not actively involved in research. This makes primary research
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This note was uploaded on 04/08/2011 for the course MGMT 401 taught by Professor Mohamed during the Spring '11 term at Manor.

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Sheet 1 - Introduction to Macroeconomics Tutorial Sheet One...

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