Firms in Colorado dump waste into the Colorado River and as a result, people in California and Mexico cannot use the water. What type of market failure is most likely involved?
A. Public goods.
B. Inequity.
C. Market power.
D. Externalities.
Answer: D
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The price elasticity of demand for oranges ________ change if the units of the quantity was changed from pounds to kilograms and ________ change if the units of the price was changed from dollars to cents
A) would; would B) would; would not C) would not; would D) would not; would not
Which of the following is a hybrid of a checking and savings account?
A) CD B) negotiable CD C) passbook accounts D) money market deposit account
The result that different auction styles in which the good goes to the winner with the highest valuation of the good generate the same amount of revenue is called
A) Revenue Equivalence Theorem. B) Marginal Revenue Theory. C) Auction Revenue Theory. D) First Bid Revenue Theorem.
Which of the following is the best example of an intermediate good?
a. a tire purchased by an auto company b. a new house purchased by a newly married couple c. grain sold to foreign farmers d. All of the above are intermediate goods.