During the Great Depression,consumers and Producers in the United States

question 50

Multiple Choice

During the Great Depression,consumers and producers in the United States dramatically reduced their spending relative to the quantity of goods and services available at the time.Which economic principle does this statement BEST represent?

• A)Choices are necessary because resources are scarce.
• B)When markets don't achieve efficiency,government intervention can improve society's welfare.
• C)Overall spending sometimes gets out of line with the economy's productive capacity.
• D)Government policies can change spending.

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Definitions:

Public Goods

Public goods refer to commodities or services that are made available to all members of a society, typically funded by the government, and characterized by non-excludability and non-rivalry in consumption.

Externalities

Consequences of an economic activity experienced by unrelated third parties; can be positive or negative.

Market Failure

A situation where the allocation of goods and services by a free market is not efficient, often justifying government intervention.

Pollution

The contamination of the natural environment by harmful substances, leading to adverse health effects and environmental damage.