Any imperfection in the market mechanism that prevents optimal outcomes is known as
A. Government failure.
B. Market failure.
C. External cost.
D. Public cost.
Answer: B
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In terms of total sales, the dominant form of business firm in the U.S. economy is the
a. corporation b. sole proprietorship c. partnership d. nonprofit organization e. limited partnership corporation
The law of ______ states that the higher (lower) the price of the good, the greater (smaller) the quantity provided, ceteris paribus.
a. equilibrium b. demand c. supply d. surplus
Suppose the annual growth rate of real GDP for the nation of Vicuna is 8%, the growth rate of velocity is 0%, and the growth rate of the money supply is 12%
a. What is the current rate of inflation? b. What will happen to the inflation rate if the growth of the money supply increases to 16%? c. What will happen to the inflation rate if the growth of the money supply increases to 16%, and at the same time, the growth rate of velocity increases to 4%?
While deficits in the United States through the 1970s, 1980s and early 1990s were high relative to our historical peacetime experience, they
a. were been below average for large industrial countries. b. were above average when compared to other large industrial countries. c. were about average for large industrial countries. d. were the lowest when compared to other large industrial countries.