What is a situation that makes the market behave inefficiently?
What will be an ideal response?
Answer: When consumers do not have enough information to make good choices
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The national debt is the total amount the ________ government has ________ to make expenditures that exceed tax revenue
A) state and local; borrowed B) federal; taxed U.S. citizens C) state and local; taxed U.S. citizens D) federal; borrowed E) federal; loaned
If the marginal product of an input is negative, the total product must also be negative
a. True b. False
An example of fiscal policy would be government:
A. increasing the amount of available educational grants. B. decreasing the income tax. C. increasing corporate income taxes. D. increasing money supply.
Which of the following is a characteristic of a contestable market?
a. long-run economic profit b. many firms that are small relative to the market c. high costs for entry and exit d. minimum-cost production methods