When producers do not produce the efficient amount of a product because they are unable to charge consumers what they are willing to pay for it, then we have a:
A. Demand-side market failure
B. Supply-side market failure
C. Competitive market
D. Monopolistic market
A. Demand-side market failure
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Assume the demand function for good X can be written as Qd = 80 - 3Px + 2Py + 10I, where Px = the price of X, Py = the price of good Y, and I = Consumer income. According to this equation:
A) a rise in the price of Y would cause the demand for X to decrease. B) X and Y are complements C) X is an inferior good. D) X and Y are substitutes.
Recognition lag is the time it takes for policymakers to recognize the existence of an economic expansion or a recession
a. True b. False Indicate whether the statement is true or false
Refer to Figure 4.3. Which diagram most likely represents the indifference map for Sony PlayStations and Nintendo GameCubes?
A. A
B. B
C. C
D. D
Which of the following is an implication of the law of diminishing returns?
A. Total output will decline as more workers are hired. B. In the long run, average total cost will eventually decline as output is expanded. C. In the short run, expansion of output will eventually lead to increases in marginal cost and average total cost. D. A doubling of all inputs will lead to more than a doubling of output.