Market failure can be caused by
a. low consumer demand.
b. equilibrium prices.
c. externalities and market power.
d. high prices and foreign competition.
c
You might also like to view...
In a market system, what provides individuals the information needed to make decisions?
A) insurance B) government C) patents D) prices
A benefit to increased diversity in the workforce, optimistically speaking, is that _________________ as more workers from traditionally disadvantaged groups are able to fulfill their potential.
a. fewer minority members will need to attend college b. more workers from advantaged groups will move up the ladder c. the economy may recover eventually d. the economy will benefit
When the macro equilibrium is above full employment, fiscal policy should be used to shift aggregate demand by the amount of
A. The difference between saving and investment. B. The AD excess, which also allows for price level changes. C. The difference between desired saving and desired investment. D. None of the choices are correct.
Refer to the information provided in Figure 2.4 below to answer the question(s) that follow.
Figure 2.4According to Figure 2.4, as the economy moves from Point B to Point D, the opportunity cost of motorcycles, measured in terms of hybrid cars,
A. increases B. remains constant. C. initially increases, then decreases. D. decreases.