Market failure means that
A. an unexpectedly harsh winter shuts down a factory.
B. the strike organized by unionized employees fails to achieve its goal.
C. too many outdated products are offered for sale in the local supermarket.
D. there is overallocation or underallocation of resources to certain economic activity.
Answer: D
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Under a managed float system, central banks can
A) allow international reserve changes. B) let exchange rates adjust to market pressure. C) experience reserve changes and exchange rate changes. D) All of the above.
If multiplier effects are ____ than policy makers expect or the natural rate of real output is _____ than expected, monetary policy will tend to overshoot its intended effects
a. Greater; greater. b. Greater; less c. Less; greater d. Less; less
The slope of an indifference curve at all points reflects
a. the terms by which the consumer can trade off goods in the market. b. the relative prices of the two goods. c. the willingness of the consumer to trade one good for another. d. consumer income relative to the price of a good. e. the relative price ratio of the two goods.
Which of the following does not affect the wages a worker earns?
a. natural ability b. effort c. chance d. All of the above affect the wages a worker earns.