Economists use the term ______ to refer to a situation in which the market on its own fails to produce an efficient allocation of resources
Fill in the blank(s) with correct word
market failure
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Refer to Figure 4.2. How many Nash equilibria exist in this game?
A) 0 B) 1 C) 2 D) 3
A decrease in default risk on corporate bonds ________ the demand for these bonds, and ________ the demand for default-free bonds, everything else held constant
A) increases; lowers B) lowers; increases C) does not change; greatly increases D) moderately lowers; does not change
Li works for a wage of $9 per hour. He has 50 hours to devote to work or leisure. If his wage rises to $11 per hour, _____
a. he will spend more time working because his opportunity cost of leisure will rise b. he will spend less time working because his opportunity cost of leisure will rise c. he will spend less time working because his opportunity cost of leisure will fall d. he will spend more time working because his opportunity cost of labor will rise
Consider an economy made up of 100 people, 60 of whom hold jobs, 10 of whom are looking for work, and 15 of whom are retired. The number counted as unemployed is
a. 10. b. 15. c. 40. d. 30. e. 90.