Air pollution from burning fossil fuels causes damages to crops and public health. This is an example of
a. a market failure caused by an externality.
b. a market failure caused by market power.
c. a market failure caused by equality.
d. There is no market failure in this case.
a
You might also like to view...
John Nash, the mathematician responsible for the Nash equilibrium, also proved that any reasonable bargaining outcome would
a. Split the gains from trade b. Allocate the gains from trade to the seller c. Allocate the gains from trade to the buyer d. All of the above
How many U.S. dollars does a U.S. importer need to pay for 100,000 yen worth of stereo equipment when the price of 1 yen is $0.008?
a. $125 million b. $1.25 million c. $80,000 d. $1,250 e. $800
There are frequently market solutions that the government can use to deal with externalities
a. True b. False Indicate whether the statement is true or false
If the U.S. purchases oil from Venezuela, what is the effect in the foreign-exchange market?
A. It will increase demand for U.S. dollars. B. It will decrease demand for U.S. dollars. C. It will increase supply of U.S. dollars. D. It will decrease supply of U.S. dollars.