A monopolist that price discriminates
a. produces too much output to be efficient
b. produces too little output to be efficient
c. produces the efficient level of output
d. charges a price equal to its marginal cost
e. faces an upward sloping demand curve
C
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What are some of the potential obstacles that can lead to market failure by preventing a market from reaching the efficient outcome? Briefly define each obstacle
What will be an ideal response?
In a competitive economy with no government sector: a. goods with spillover benefits will not be produced at all. b. there will be too few public goods produced
c. goods with spillover costs will be underproduced. d. too few resources be allocated to each industry.
Related to the Economics in Practice on p. 431: The National Income and Product Accounts (NIPAs) allow policymakers and economists to analyze the impact of
A. monetary policy. B. spending and tax plans. C. price shocks. D. all of the above
Private saving is defined as
A. private disposable income minus consumption plus interest plus transfer payments. B. net national product minus consumption. C. private disposable income minus consumption plus interest. D. private disposable income minus consumption.