Which of the following is not an example of market failure?
a. Extreme income inequality
b. Efficient equilibrium
c. Lack of competition
d. Externalities
b
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Refer to the scenario above. If Maria's opportunity cost of time increases to $80 per hour, the cost involved in taking the train is:
A) $320. B) $720. C) $800. D) $970.
Which of the following would you expect to decrease both interest rates and exchange rates? (Assume exchange rates are stated in terms of foreign currency per domestic currency.)
A) contractionary monetary policy B) contractionary fiscal policy C) expansionary monetary policy D) Both B and C will decrease both interest rates and exchange rates.
A five-cent deposit on beer bottles
A) provides a positive incentive because it rewards people for recycling. B) provides a negative incentive because it punishes people who do not recycle. C) is an irrational policy, because it fails to take into account incentives. D) is an irrational policy, because it fails to take into account self-interest.
Moving along an elastic portion of a demand curve, a small percentage change in price leads to a larger percentage change in quantity demanded
a. True b. False Indicate whether the statement is true or false