Competitive markets generally do not provide unemployment insurance because of
A. problems created by moral hazard.
B. problems created by externalities.
C. problems created by cost disease.
D. unemployment insurance is a public good.
Answer: A
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Gross investment minus net investment is equal to
A) consumption. B) nominal investment. C) depreciation. D) real investment.
In monopolistic competition, firms do not have to produce innovative products because they have downward-sloping demand curves
Indicate whether the statement is true or false
Refer to Figure 15-8. Use the figure above to answer the following questions
a. Identify the curves labeled A and B. Identify the curve which contains both point Y and point Z. Identify the curve which contains both point V and point W. b. What is the profit-maximizing quantity and what price will the monopolist charge? c. What area represents total revenue at the profit-maximizing output level? d. What area represents total cost at the profit-maximizing output level? e. What area represents profit? f. What is the profit per unit (average profit) at the profit-maximizing output level? g. If this industry was organized as a perfectly competitive industry, what would be the profit-maximizing price and quantity? h. What area represents the deadweight loss as a result of a monopoly?
For which of the following goods is the income elasticity of demand likely lowest?
a. water b. sapphire pendant necklaces c. filet mignon steaks d. fresh fruit