What do economists mean when they say there is "market failure"?
A. Markets have surpluses or shortages so that government rationing is necessary.
B. Free markets have led to excessive profits.
C. Business has introduced a product that consumers do not want.
D. Free markets yield results that economists do not consider socially optimal.
Answer: D
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If it costs View Your World, a high-end window manufacturer, $25 per window to install a higher quality glass in its windows and consumers will pay an additional $30 per window for the improvement, which of the following is true?
A) View Your World should install the higher quality glass because the marginal revenue from the quality enhancement is less than the marginal cost. B) View Your World should not install the higher quality glass because the marginal revenue from the quality enhancement is less than the marginal cost. C) View Your World should not install the higher quality glass because the marginal revenue from the quality enhancement exceeds the marginal cost. D) View Your World should install the higher quality glass because the marginal revenue from the quality enhancement exceeds the marginal cost.
If Canada began to export maple syrup to Australia, which of the following will happen?
a. The price of maple syrup in Australia will increase and Australian consumers will be made worse off. b. The price of maple syrup in Australia will decrease and the Australian consumers will be made better off. c. The price of maple syrup in Canada will decrease and the Canadian consumers will be made better off. d. The price of maple syrup in Canada will increase and the Canadian consumer will be made worse off. e. The price of maple syrup in Canada will decrease and the Canadian consumer will be made worse off.
In economics, the term "autonomous" means
A. existing independently. B. excessive spending. C. non-economic related. D. disposable income.
It is believed that in order to promote growth, a top priority of the World Bank and the International Monetary Fund is to
A. focus on basic market foundations of guaranteeing property and contract rights. B. promote the increase of dead capital. C. make more loans. D. join forces and merge into one unit.