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

Economics

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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

Economics

If the marginal product of an input is negative, the total product must also be negative

a. True b. False

Economics

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.

Economics

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

Economics