When market failure is present,
a. democratic political decision-making can be counted on to improve the efficiency of resource allocation.
b. market allocation will achieve idealized economic efficiency.
c. the conditions implied by idealized efficient allocation of resources will be absent, but it does not follow that political action will improve the situation.
d. democratic political decision-making will never be able to improve the efficiency of resource allocation.
C
You might also like to view...
Refer to the below graphs. (Assume that the pre-migration labor force in Country A is 100 and that it is 150 in country B.) The migration of labor will:
A. Increase domestic output in both countries
B. Decrease domestic output in both countries
C. Increase domestic output in country A and decrease domestic output in country B
D. Decrease domestic output in country A and increase domestic output in country B
Before World War I, most countries belonged to a system of fixed exchange rates in which currencies were tied to which of the following assets?
A) The U.S. dollar B) The British pound C) Silver D) Gold
When quantity supplied is greater than quantity demanded, there is a ____________.
Fill in the blank(s) with the appropriate word(s).
The "interest-only" mortgage typically converts later to a
A. traditional mortgage with a higher payment. B. traditional mortgage with a lower payment. C. "exotic" mortgage with a lower payment. D. "negative-amortization" mortgage with a lower payment.