Market failure occurs when:
a. the stock markets tumble due to heavy selling
b. the market economy fails to allocate resources efficiently.
c. demand shows signs of slowing down.
d. a country cannot produce a particular good or service at a lower opportunity cost than other countries.
b
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The market for Pandas needed in zoos worldwide is an example of a monopoly created by what type of barrier?
a. license b. economies of scale c. control of an essential resource d. none of the above, the market for pandas is not a monopoly
Real business cycle theory explains changes in employment and output by focusing on
A. changes in monetary policy. B. the interaction of fiscal and monetary policies. C. changes in fiscal policy. D. real supply-side factors.
Refer to the above table. If the price of a movie download is $2 and the price of an apple pie is $5 and the consumer has $19, the rational consumer will purchase
A. 5 movies and 6 apple pies. B. 6 movies and 6 apple pies. C. 2 movies and 3 apple pies. D. 2 movies and 2 apple pies.
Refer to the information provided in Figure 7.8 below to answer the question(s) that follow. 
Figure 7.8Refer to Figure 7.8. The firm's isocost line could shift from CD to CE if the
A. price of labor increased. B. price of labor decreased by 50%. C. firm's total expenditures increased by 50% or the price of capital and labor each decreased by 33%. D. firm's total expenditures increased by 50%.