Explain the four sources of market failure
What will be an ideal response?
The four sources of market failure are: imperfect market structure, existence of public goods, presence of external costs and benefits, and imperfect information.
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What is microfinance?
What will be an ideal response?
The United States has a trade ________ with all its major trading partners and a trade ________ with every region of the world except for Latin America
A) deficit; deficit B) deficit; surplus C) deficit; balance D) surplus; deficit E) surplus; surplus
In the market for education, the ever-increasing faculty salaries and costs of using technology in learning are blamed for increases in tuition fees. On the basis of this argument, which of the following statements is true? a. Tuition fees increase due to an increase in demand for education
b. Tuition fees increase due to a decrease in demand for education. c. Tuition fees increase due to an increase in the supply of education facilities. d. Tuition fees increase due to an increase in the rate of interest on education loans.
Consider a potato farmer whose cost of production is $2.25 a bushel. In May, she expects that the potato when harvested in July will sell for either $2 a bushel or $3.00. She could avoid the probability of a loss by contracting to deliver the potatoes in July at $2.50. Such a contract is traded in a
a. futures market. b. spot market. c. portfolio market. d. diversified market.