Explain what is meant by market failure
What will be an ideal response?
Discussed in the chapter, pages 544–545.
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In a country with 200 million people aged 16 years and older, 120 million are in the labor force, and 114 million are employed, what is the participation rate?
A. 57 percent B. 40 percent C. 95 percent D. 60 percent
It is a conventional practice among apparel retailers to set the retail price of clothing at twice the cost paid to the manufacturer. For example, if the retailer pays $7 for a pair of jeans, the jeans will retail for $14
What must the price elasticity of demand be for this practice to be profit maximizing?
The "naïve" Keynesian model is unrealistic because it
A. Does not take into account probable changes in the price level as the economy approaches full employment. B. Assumes that AS is upward sloping when it is more probably horizontal. C. Assumes that the price level decreases as AD increases. D. Does not account for changes in output due to the multiplier.
If the nominal deficit is $300 billion, inflation is 10 percent, and total debt is $2 trillion, then the real deficit is equal to:
A. ?$20 billion. B. $100 billion. C. $20 billion. D. ?$100 billion.