Government intervention in a perfectly competitive market A) ...

[bb]

Government intervention in a perfectly competitive market
 
  A) reduces economic well-being.
  B) is an illustration of the invisible hand theorem.
  C) increases economic well-being.
  D) guarantees maximized well-being.

Question 2

If the demand curve is horizontal a rightward shift of the supply curve will lead to
 
  A) an increase in quantity supplied.
  B) an increase in price.
  C) a decrease in quantity demanded.
  D) a decrease in price.

[verrinzo]

Answer to Question 1

A

Answer to Question 2

A