Indicate whether each statement is true or false. a. Market failure can occur only in the presence of external costs. b. The government sometimes intervenes when market failure occurs. c. Market failure occurs when a free market provides a suboptimal quantity of goods and services.

The strength of the economy depends on the balance pf production and consumption of goods and consumption of goods and services

Acoase solution to a problem of externality ensures that a socially efficient outcome is to

Determine if the following statements are true or false. an increase in government spending can crowd out private investment. an improvement in the budget balance increases the demand for financial capital. an increase in private consumption may crowd out private investment. lower interest rates can lead to private investment being crowded out. a trade balance in sur+ increases the supply of financial capital. if private savings is equal to private investment, then there is neither a budget sur+ nor a budget deficit.