Market failure happens when a market does not generate the most efficient outcome.
Answer the following statement true (T) or false (F)
True
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The United States economy ______________ operates on its production possibility curve.
A. Always B. Sometimes C. Never
To infer the political tendencies of the students at your college/university, you sample 150 of them. Only one of the following is a simple random sample: You
A) make sure that the proportion of minorities are the same in your sample as in the entire student body. B) call every fiftieth person in the student directory at 9 a.m. If the person does not answer the phone, you pick the next name listed, and so on. C) go to the main dining hall on campus and interview students randomly there. D) have your statistical package generate 150 random numbers in the range from 1 to the total number of students in your academic institution, and then choose the corresponding names in the student telephone directory.
When the market is in long-run equilibrium in a perfectly competitive market, this implies that in the long run means
A. no firm in the industry has an incentive to exit. B. no firm outside the industry has an incentive to enter. C. no firm in the industry has an incentive to increase or decrease its output. D. all of these conditions are met in the long run equilibrium.
The fact that resources tend to be specialized is one reason the production possibilities frontier is drawn
a. bowed outward. b. bowed inward. c. as a straight line (but not horizontal). d. as a horizontal straight line.