Market failure occurs when a market maximizes net social welfare
a. True
b. False
Indicate whether the statement is true or false
False
You might also like to view...
Define the following terms and explain their importance to the study of macroeconomics: a. Aggregation b. Recession c. Gross domestic product d. Final goods and services e. Stabilization policy
What will be an ideal response?
After September 11, 2001, a small group of economists argued that the economy’s self-correcting mechanism would work to counteract the recessionary effects of the attack.
Answer the following statement true (T) or false (F)
In perfect competition
A) the market demand curve and the individual's demand curve are identical. B) the market demand curve is perfectly inelastic while demand for an individual seller's product is perfectly elastic. C) the market demand curve is perfectly elastic while demand for an individual seller's product is perfectly inelastic. D) the market demand curve is downward sloping while demand for an individual seller's product is perfectly elastic.
The slippage between output and the unemployment rate occurs because the unemployment rate is calculated from data on
A. the number of people employed. B. the number of jobs. C. the number of people who do not want to work. D. the civilian adult population.