A market failure likely occurs when
A) the consumption of a good generates an effect on third parties.
B) firm production lacks an externality on third parties.
C) consumers are sovereign but firms are not sovereign.
D) there is no much competition in a market.
Answer: A
You might also like to view...
In an attempt to reduce poaching of elephant tusks for ivory, officials in Kenya burned illegally gathered ivory. Economists tend to point out that
a. poaching can be reduced with price supports for ivory. b. the supply of ivory has fallen, leading to an increase in price and reward for poaching. c. burning ivory decreases demand, leading to lower prices and reward for poaching. d. the demand for ivory is higher, leading to an increase in price and reward for poaching. e. burning ivory raises demand, and controlled prices will lead to even greater poaching.
School vouchers are
A. provided by the government. B. provided by private organizations. C. public funds to be used for private tuition. D. all of these answer options are correct.
When an established domestic industry is in jeopardy of being displaced by lower-priced imports, then there could be a rationale for encouraging imports
Indicate whether the statement is true or false
A measure of the volatility of a variable is its
a. present value. b. future value. c. return. d. standard deviation.