When market failures occur
A. the invisible hand will correct for the market failures.
B. buyers and sellers will correct the market failures.
C. the price system will correct the market failures.
D. the government can step in to correct the market failures.
Answer: D
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The absence of clear property rights
A) is common in many developing nations. B) encourages creative destruction. C) is caused by capital deepening. D) all of the above.
What effect does the televising of the Super Bowl have on the cost to the National Football League of giving someone a ticket to the game?
A) It has no effect because all the costs of playing the game are sunk costs. B) It has no effect on the cost because the demand doesn't affect cost. C) It lowers the cost because fewer people will want to buy tickets. D) It raises the cost because fewer people will want to buy tickets.
A decrease in foreign output would cause the domestic country's net exports to ________ and cause the domestic country's IS curve to ________
A) rise; shift up B) rise; shift down C) fall; shift up D) fall; shift down
The marginal physical product of labor is
a. the slope of the total output curve at the relevant point. b. the negative of the slope of the total output curve at the relevant point. c. the slope of the line connecting the origin with the relevant point on the total output curve. d. the negative of the slope of the line connecting the origin with the relevant point on the total output curve.