Explain three ways in which a market may fail.
What will be an ideal response?
Public goods are one of the classic cases in which markets do not work effectively. Markets cannot efficiently produce goods such as national defense or public parks that, once created, are difficult to exclude all citizens from enjoying. Therefore, these goods (and services) may have to be delivered through the public sector and financed through taxation. Markets may also fail because of externalities, meaning that the total social costs--for example, pollution--of some activities are not included in the market price of a product. And markets may also fail because the participants do not have adequate information and therefore cannot make optimal decisions.
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According to the U.S. Constitution, the citizens of each state shall be entitled to all privileges and immunities of citizens in the several states
Indicate whether this statement is true or false.
Which important event encouraged many scientists to become more skeptical of realism?
a. The end of the American Civil War b. The end of World War II c. The end of the Cold War d. The Holocaust e. The terrorist attacks of 9/11
Dr. French makes sure that she has multiple video cameras recording her observation room during data collection. She also has multiple research assistants review the video recordings after the data are collected. This is to control for
a. attribute errors b. participant effects c. experimenter expectancy d. recording errors
Government intervention in the workings of the business market in order to promote some socially desired goal is called
A) expansionism. B) isolationism. C) regulation. D) redistribution. E) ??coding.