The term market failure means the market mechanism has not generated the best possible mix of output.
Answer the following statement true (T) or false (F)
True
Market failure is an imperfection in the market mechanism that prevents optimal outcomes.
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Refer to Table 2.3. Increasing the number of workers from 2 to 3 will increase output per day by
A) 60 units. B) 90 units. C) 150 units. D) 240 units.
Consider baseball games and ballpark hotdogs. A significant increase in the price of baseball game tickets would tend to
A) increase the demand for ballpark hotdogs. B) decrease the demand for baseball game tickets. C) decrease the demand for ballpark hotdogs. D) increase the demand for baseball game tickets.
Refer to Figure 13-4. Given the economy is at point A in year 1, what is the inflation rate between year 1 and year 2?
A) 0.9% B) 1.8% C) 2.7% D) 3.0%
For every 1 percentage point that the actual unemployment rate exceeds the natural rate, a 2 percentage point negative GDP gap occurs. This is a statement of:
A. Taylor's rule. B. Okun's law. C. Say's law. D. the Coase theorem.