One common source of market failure is
A) perfect information. B) pollution.
C) private goods. D) perfect competition.
B
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The difference between the marginal expenditure and the wage is greater when the supply curve of labor is
A) less elastic at the monopsony optimum. B) more elastic at the monopsony optimum. C) more elastic than the demand curve. D) The difference does not depend on any elasticity.
If the government pays a per-unit subsidy to the producer of a service, we would expect to see a(n) I. increase in the quantity demanded. II. decrease in the out-of-pocket price paid by consumers. III
increase in the quantity supplied by producers. A) I only B) both I and II only C) both II and III only D) I, II, and III
Markets fail to maximize total surplus when:
A. individual choices impose costs or benefits on others. B. society's choices impose costs or benefits on other societies. C. when all costs and benefits are received by participants in transactions. D. producer surplus is not exactly equal to consumer surplus.
The major economic problem is to:
a. provide for full employment. b. eliminate scarcity. c. increase the standard of living. d. allocate limited resources among unlimited uses. e. increase leisure.