Markets can be missing:
A. because public policy prevents the market from existing.
B. when the production of a particular good is banned.
C. because of a lack of accurate information between potential buyers and sellers.
D. All of these are true.
D. All of these are true.
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Which of the following statements is TRUE about the relationship among external, internal and social costs?
A) Social costs will always be higher than external costs. B) Social costs will always be higher than internal costs. C) Internal costs will always be higher than external costs. D) Internal costs will never equal external costs.
When nominal interest rates are held below inflation rates, then households will have an incentive to
a. consume. b. save. c. purchase financial assets. d. postpone current consumption plans.
Which type of compensation mechanism works by threats?
A. Piece rate B. Profit sharing C. Revenue sharing D. Spot check
Italy has an absolute advantage in the production of which product?
