A market failure in the form of an externality arises when
a. production costs are included in the price of a good
b. not all costs and benefits are included in the price of a good
c. the benefits of consuming a good exceed the costs
d. a market fails to achieve equilibrium
e. equilibrium price is unstable
B
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If the ratio of the dollar price of a U.S. toy to the dollar price of a Chinese toy is less than one:
A) retailers in the U.S. should buy the toys from both Chinese suppliers and American suppliers. B) retailers in the U.S. should not buy the toys from both Chinese suppliers and American suppliers. C) retailers in the U.S. should buy the toys from Chinese suppliers. D) retailers in the U.S. should buy the toys from American suppliers.
Which of the following activities is NOT a primary concern of investment banks?
A) taking in deposits and making loans B) providing advice and financing for mergers and acquisitions C) underwriting new security issues D) providing advice on new security issues
_________ is the investment that individuals make in education, training, and health care that raise their productive capacity.
A. Capital market B. Human capital C. Human engineering D. Private good production
Which of the following statements is correct?
A. Neither stocks nor bonds are financial assets. B. Bonds are financial assets but stocks are not. C. Stocks are financial assets but bonds are not. D. Both stocks and bonds are financial assets.