What is meant by market failure?
What will be an ideal response?
Market failure occurs when resources are misallocated, or allocated inefficiently. The result is waste or lost value.
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A firm in ________ will engage in ________ to try to earn an economic profit
A) perfect competition; advertising B) monopolistic competition; product differentiation C) perfect competition; price wars D) monopolistic competition; price wars
All of the following are criticisms of the Lorenz curve EXCEPT
A) The Lorenz curve does not include in-kind transfers. B) The Lorenz curve does not account for age differences. C) The Lorenz curve does not account for differences in the sizes of families. D) The Lorenz curve does not account for differences in education levels.
In the short run, ________ factors of production are fixed, while in the long run, ________ of them are.
A. some; none B. all; none C. no; at least some D. all; at least some
Mercosur is a trade agreement between nations
A. in Southern Europe. B. in South America. C. in Southeast Asia. D. in South Africa.