Question 1
Economists use the term "market failure" to refer to those free-market situations where
◦ externalities do not exist in the economy.
◦ the economy is not in equilibrium.
◦ income is not distributed equitably.
◦ allocatively efficient outcomes are not achieved.
◦ government has intervened in the economy.
Question 2
The concept of "institution building"
is becoming more prominent. Which of the following best describes the aim of institution building?
◦ Canada's aid to developing countries is being focused on creating the economic institutions, such as a central bank, that are key to a country's economic growth.
◦ The rich, developed countries focus their assistance to developing countries on creating stable political infrastructures.
◦ In Canada, for example, the strengthening of existing financial institutions is key to the country's economic well-being.
◦ The rich, developed countries focus on the success of institutions that are global in nature, such as the United Nations, The World Bank and the International Monetary Fund.
Concept Care Map
Kreutz Sungrazers (SOHO-54 & 55) with prominent tails, as seen by SOHO on June 1 and 2, 1998.
In this 1900 cartoon, oil baron John D. Rockefeller holds the White House in the palm of his hand wh
Teresa Hubbard and Alexander Birchler, Detached Building.
Teresa Hubbard and Alexander Birchler, Detached Building.
Concept Formation