When misallocation of resources for production of a good results in spillover effects on third parties, there is a
A) market failure.
B) government failure.
C) legislative failure.
D) productive failure.
A
You might also like to view...
The opportunity cost of producing one more unit of a good or service is the
A) marginal cost. B) marginal benefit. C) efficient level of production. D) market outcome. E) price of the good or service.
Using the rule of 70, a sustained 3 percent per year real GDP growth rate will
A) last for 70 years. B) double the current level of real GDP in about 23 years. C) double the current level of real GDP in about 210 years. D) double the current level of real GDP in about 70 years. E) double the current level of real GDP in about 40 years.
If the marginal revenue of the next unit a firm produces is $50 and its marginal cost is $35, a firm should:
A. increase production. B. reconsider past production decisions. C. decrease production. D. hold production constant.
If the slope of a demand curve is constant, then we know that
A) elasticity of demand is also elastic everywhere. B) elasticity of demand is constant and elastic. C) elasticity of demand is inelastic everywhere. D) elasticity of demand varies along the demand curve.