Market failures
A. prevent the price system from attaining economic efficiency.
B. encourage businesses to produce more of a good than they really want to.
C. encourage people to purchase more of a good than they really want.
D. are usually caused by government interference in the economy.
Answer: A
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When the price of a burrito increases from $2 to $4, the quantity demanded decreases from 50 to 40. Using the midpoint method, the price elasticity of demand equals
A) 1/3. B) 3. C) 2. D) 1. E) 1/2.
Refer to the scenario above. What is the price effect of the price change?
A) $1,750 B) $2,000 C) $3,750 D) $5,400
New England shippers faced higher labor costs than English shippers
a. in trade between the Southern colonies and England. b. in trade between the West Indies and England. c. in trade between New England and England. d. in all trade with England.
Games that don't have a dominant strategy:
A. do not have stable equilibrium outcomes. B. may have stable equilibrium outcomes. C. always have stable equilibrium outcomes. D. don't exist; all games have at least one dominant strategy.