Sources of market failure include
A. external costs.
B. public goods.
C. external benefits.
D. All of the above are correct.
Answer: D
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In order for a cap-and-trade system to work, it must be that pollution permits are bought by producing firms -- and not given to them as part of an attempt to prevent them to lobby against the cap-and-trade system
Answer the following statement true (T) or false (F)
Ceteris paribus, if an 6% increase in quantity supplied is caused by an 8% increase in price, then: a. supply is elastic
b. supply is unit elastic. c. supply is inelastic. d. the supply curve is perfectly vertical.
Demand curves for pure public goods satisfy the law of demand.
A. True B. False C. Uncertain
Discrimination that results in minorities being paid less than whites for identical work would be an example of which explanation for wage differentials?
A. Noncompeting groups B. Compensating differences C. Market imperfections D. Principal-agent problems