Thousands of people develop lung cancer from second-hand exposure to cigarette smoke. This is an example of
a. a market failure caused by an externality.
b. a market failure caused by market power.
c. a market failure caused by equality.
d. There is no market failure in this case.
a
You might also like to view...
Refer to Table 10.1. The value of the tax multiplier in this economy is
A) 0. B) -2. C) -4. D) -5.
When a monopoly lowers its price to increase quantity
A) it is not maximizing its profit. B) it will increase its profit. C) it will make less money on the units it would have originally sold. D) the quantity produced drives down marginal revenue.
In an economic model of consumer behavior, rational self-interest would likely be
a. a key variable b. the hypothesis of the model c. a behavioral assumption d. a prediction of the model e. a method of testing the model
Competing-interest legislation is characterized by
a. concentrated costs and concentrated benefits b. concentrated benefits and widespread costs c. widespread benefits and widespread costs d. widespread benefits and concentrated costs e. zero costs