Explain the concept of market failure
Market failure is a situation in which the market on its own fails to produce an efficient allocation of resources.
You might also like to view...
The principles of economics cannot explain which of the following:
A. Why people choose to work or go to college. B. Why a country might prosper. C. How the value of money changes over time. D. How the temperature index is measured.
If x causes y, then
a. x and y are inversely related b. y is a dependent variable c. other variables don't matter d. y must, in turn, cause x e. x and y are always in a direct relation to each other
A rightward (an outward) shift of a nation's production possibilities curve could be caused by:
a. a decrease in technology. b. an increase in resources. c. producing more consumer and fewer capital goods. d. a decline in the labor force's level of education and skills.
Which of the following is an open market purchase?
a. When private individuals sell government bonds b. When the Fed sells government bonds c. When private individuals purchase government bonds d. When bond dealers buy government bonds from the fed e. When the Fed buys government bonds