What Is the Main Reason Many Economists Do Not Believe

question 30

Multiple Choice

What is the main reason many economists do not believe in or trust the free market?

• A) the speed with which a free market adjusts to changes
• B) market failures
• C) special interest groups influence politicians
• D) natural resources are over-used
• E) statistical discrimination is costly

Assess the impact of changes in market conditions on equilibrium price and quantity.

Understand the role of government interventions in the market, such as taxes, price floors, and price ceilings.

Analyze how taxes affect market outcomes and the burden of tax on buyers and sellers.

Understand the concept of elasticity and how it affects the burden of taxation.

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Definitions:

Guilt And Shame

Guilt refers to the feeling of remorse for having done something wrong, while shame involves feeling embarrassed or humiliated by one's actions, character, or associations.

Constructive

Serving a useful purpose; tending to build up.

Destructive

Causing great and irreparable harm or damage.

Duchenne Smile

A genuine smile that involves contraction of both the zygomatic major muscle (raising the corners of the mouth) and the orbicularis oculi muscle (raising the cheeks and forming crow's feet around the eyes).