Government failure occurs when government intervention fails to improve economic outcomes or makes them worse.
Answer the following statement true (T) or false (F)
True
In such a case, the market outcome would be preferred to government intervention.
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A single-price monopoly is characterized by a marginal revenue curve that is
A) upward sloping. B) downward sloping. C) horizontal. D) vertical.
When graphing the per worker production function, ________ is on the horizontal axis and ________ is on the vertical axis
A) labor; real GDP B) the capital stock; real GDP C) the capital-labor ratio; real GDP per worker D) capital per worker; the labor force
Even though a cartel is often profitable for its members, cartel arrangements contain the seeds of their own disintegration because
a. a price maintained above each cartel member's marginal cost provides each member with an incentive to offer secret price reductions to attract additional customers. b. the profits earned by cartel members will induce others to enter the industry. c. cartel members will attempt to garner more of the total profit for themselves by cheating on their agreement with other members. d. all of the above are correct.
For any country, if the world price of copper is lower than the domestic price of copper without trade, that country should
a. export copper. b. import copper. c. neither export nor import copper, since that country cannot gain from trade. d. neither export nor import copper, since that country already produces copper at a low cost compared to other countries.