In a competitive market, a good is most likely to be provided at inefficient levels if
A. private opportunity costs are positive.
B. people can easily be prevented from using a good.
C. people cannot be prevented from using a good.
D. the good is depleteable.
Answer: D
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Cole was discussing the market for cocoa beans with his friend John Schmidt
Cole said, "Ever since Venezuela announced that its cocoa harvest was its lowest ever in fifteen years, the price of cocoa beans has been rising and rising and people are buying more and more. I think the demand for cocoa beans must be upward sloping." Is Cole right? Briefly explain why or why not.
_____________ is the distance between speakers
a. Artifacts b. Cybernetics c. Proxemics d. Calibrations
The U.S. dollar bill
a. is fiat money b. cannot be used as a medium of exchange c. is backed by gold d. cannot be used as a store of value e. cannot be used as a payment for debts
If an economy were experiencing a high rate of unemployment as the result of weak aggregate demand, a Keynesian economist would be most likely to recommend
a. a reduction in taxes coupled with a reduction in government expenditures of equal size. b. an increase in government expenditures coupled with an increase in taxes of equal size. c. a reduction in taxes, without any offsetting reduction in government expenditures. d. maintenance of a balanced budget.