[amandastevenson]

Don't know if it goes here, but I want to know below statements are true or false and why?

-Trade with any nation can be mutually beneficial.
-If market failure exist the govt can improve market outcome.
-Govt policy improve equality and efficiency during same time.
-Marginal change is small incremental adjustment in action.
-The invisible hand ensure economic prosperity divided equally.
-Inflation is primary determinant of country's living standard.
-Its irrational for cost of good to be less then the common price.
-Primary effect of increase amount of money is higher prices.
-Rational decision maker take action when marginal cost exceed marginal benefit.
-Market failure is when it fail to allocate resources.

[Wondergirl]

You answer them first (it's YOUR homework, after all), and we will tell you if any are wrong and why.

[amandastevenson]

If I answer them I think is...
-Trade with any nation can be mutually beneficial. False, not all nations are beneficial.
-If market failure exist the govt can improve market outcome. True
-Govt policy improve equality and efficiency during same time. False both may have conflict.
-Marginal change is small incremental adjustment in action. True
-The invisible hand ensure economic prosperity divided equally. True
-Inflation is primary determinant of country's living standard. True
-Its irrational for cost of good to be less then the common price. True
-Primary effect of increase amount of money is higher prices. False there are other reasons for inflation.
-Rational decision maker take action when marginal cost exceed marginal benefit. True
-Market failure is when it fail to allocate resources. True

[Tordmor]

If I answer them I think is...
-Trade with any nation can be mutually beneficial. False, not all nations are beneficial.

Wrong. Trade is always mutually beneficial, otherwise you wouldn't trade.

-If market failure exist the govt
can improve market outcome. True

Wrong. A government agency would need to know what is the desired outcome in order to improve on the market. But since preferences are individual government can't know.

-Govt policy improve equality and efficiency during same time. False both may have conflict.

Correct.

-Marginal change is small incremental adjustment in action. True

I don't understand that question.

-The invisible hand ensure economic prosperity divided equally. True

Wrong. The "invisible hand" divides prosperity according to each market participant's production value which is normally not equal.

-Inflation is primary determinant of country's living standard. True

Wrong. Inflation creates a false sense of living standard which leads to a loss in true living standard.

-Its irrational for cost of good to be less then the common price. True

Wrong. There are many reasons someone would want to sell for less. E.g. to rapidly gain a large market share.

-Primary effect of increase amount of money is higher prices. False there are other reasons for inflation.

Wrong. Increase in monetary supply is the single reason for price increases of all goods. (Some goods might have rising prices for other reasons)

-Rational decision maker take action when marginal cost exceed marginal benefit. True

Wrong. An exchange takes place when for each participant of the exchange marginal benefit exceeds marginal cost.

-Market failure is when it fail to allocate resources. True

Market failure is when exchanges should happen according to the preferences of the participants but don't.

[morgaine300]

Wrong. Trade is always mutually beneficial, otherwise you wouldn't trade.

Have to disagree. Do people/companies/governments always do things that are beneficial? Heck no. Besides, look at the question again - it's asks if "trade with any nation can be" beneficial. Not necessarily.

Many of these questions require too much politics. I wonder what side the instructor is on?