The Market

question 21

Multiple Choice

The market

• A)On its own may not always provide the optimal mix of goods and services.
• B)Always provides the optimal mix of goods and services.
• C)Always provides a better mix of goods and services without government intervention than it does with government intervention.
• D)May not produce the optimal mix of output,which is known as government failure.

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Definitions:

John Ehrlichman

A key advisor and assistant to President Richard Nixon, primarily involved in domestic affairs and later linked to the Watergate scandal.

Plumbers

Individuals skilled in installing and maintaining systems used for potable (drinking) water, sewage, and drainage in plumbing systems; also refers to a covert White House Special Investigations Unit during the Nixon administration.

Daniel Ellsberg

A former United States military analyst who, during the Vietnam War, released the Pentagon Papers, a top-secret Department of Defense study of U.S. political and military involvement in Vietnam, to the public.

South Vietnamese President

The head of state of South Vietnam, officially known as the Republic of Vietnam, during its existence from 1955 until its fall to North Vietnam in 1975.