Which of the following situations is not an example of market failure:
A. Ben's Department Store cannot charge passers-by for using the sidewalk outside the store
B. Ben cannot afford to buy a high-end Mercedes Benz luxury car
C. Ben's Place is the only restaurant in town and thus he has significant power to set menu prices
D. Ben's Industries is dumping its wastewater into the unregulated river behind the factory
B. Ben cannot afford to buy a high-end Mercedes Benz luxury car
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Exports are products produced in the home country and sold in another country
Indicate whether the statement is true or false
The natural rate of unemployment is higher in Europe than in the U.S. due to ________
A) the greater relative strength of American unions B) the greater relative generosity of U.S. unemployment benefits C) the greater severity of the business cycle in Europe relative to the U.S. D) stricter European work rules
A property tax is equivalent to a tax on income
a. True b. False
When an input represents a small proportion of a firm's total costs, then
A) demand for the input will tend to be less elastic. B) the input demand will vary significantly with a change in input price. C) the usage of the input cannot be varied in the production function. D) output demand will be highly elastic.