A species of snakes became extinct due to pollution in a river where the snakes once lived. This is an example of
a. a market failure caused by an externality.
b. a market failure caused by market power.
c. a market failure caused by equality.
d. There is no market failure in this case.
a
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Use the following diagram to answer the next question.
If CD is the economy's current production possibilities frontier, what is the most likely reason for operating at point X?
A. increases in the quantity and the quality of resources B. improvement in labor productivity and the number of work-hours C. technological progress and industrial change D. unemployment and inefficient allocation of resources
It was more than a century ago that an engineer named Frederick Taylor walked into factories and starting timing workers with a stop watch. He dissected their movements, and organized them more efficiently
He turned factory production into a science. Suppose work was completed in the factory based on what the floor manager decided and workers were paid a base daily wage plus a bonus when they produced more than expected. How does this firm organize production? A) through the command system B) through the incentive system C) through the market system D) through a mixed command and incentive system
Which round of GATT first addressed subsidies?
What will be an ideal response?
A decrease in demand would be represented by
A) the price of a good going from $3 to $4. B) an increase in the cost of resources used to produce the good. C) a movement along the demand curve. D) a shift of the demand curve to the left.