A situation in which the market system allocates too few resources to the production of a given activity is known as
A. market efficiency.
B. market failure.
C. market signaling.
D. market allocation.
Answer: B
You might also like to view...
The profit earned from selling an asset for more than you paid for it is called
a. capital gains. b. the real interest rate. c. depreciation. d. appreciation.
The accompanying figure shows Becky's daily production possibilities curve for dresses and skirts.
Point T is:
A. attainable. B. neither attainable nor efficient. C. both attainable and efficient. D. efficient.
Which of the following is correct?
A. The money supply growth rate and the growth rate of velocity can both be changed permanently. B. The money supply growth rate can be changed permanently, but changes in the growth rate of velocity are always temporary. C. The growth rate of velocity can be changed permanently but changes in the money supply growth rate are always temporary. D. Neither the money supply growth rate nor the growth rate of velocity can be changed permanently.
In which case is total expenditure in an economy NOT equal to total income?
A. if total saving is larger than total investment B. if net exports are not zero C. if inventory investment is negative D. None of the answers is correct—they are always equal.