The first economist to systematically analyze market failure was
A) Adam Smith.
B) Ronald Coase.
C) A. C. Pigou.
D) J. E. Meade.
Answer: C
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Native-born workers may not be harmed by immigration if it:
A. Reduces wages and labor demand is inelastic B. Reduces the rate of return on capital C. Increases the rate of return on capital D. Causes production costs to rise
If Table 12.2 represents all the investments available to the economy, the nominal interest rate is 10 percent and there is no inflation, what will be the level of investment in the economy?
A) $0 B) $200 C) $300 D) $500
The "real" interest rate charged on a loan is the
A) prime rate. B) prime rate plus the risk premium. C) the rate charged minus the costs of supplying credit. D) the rate charged minus the expected rate of inflation.
Acme is a perfectly competitive firm. It has the cost schedules given in the above table and has a fixed cost of $12.00. The price of Acme's product is $14.20
What is Acme's most profitable amount of output? What is Acme's total economic profit or loss?