Market failures occur when
A) externalities exist.
B) economic efficiency increases.
C) there is an increase in demand.
D) there is a change in quantity demanded.
A
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The market for smartwatches has begun to grow, due in part to the success of the Apple Watch
Following the successful launch of the Apple Watch in 2015, companies such as Samsung, Sony, and LG have all developed products to compete with the Apple Watch. The smartwatches introduced to compete with the Apple Watch would be considered A) complements to the Apple Watch. B) substitutes for the Apple Watch. C) normal goods compared to the Apple Watch. D) inferior goods compared to the Apple Watch.
Which of the following is a reason that the Fed does not traditionally attempt to limit asset price bubbles?
a. The Fed's actions could do more harm than good. b. It is nearly impossible to determine if a bubble exists before it bursts. c. The Fed's policies cannot be targeted at only one sector of the economy. d. all of the above
Which of the following will most likely provide fiscal stimulus to the economy?
A. Decreasing government spending on goods and services. B. Increasing transfer payments. C. Higher interest rates. D. Increasing taxes.
Increases in worker productivity usually reflect
A. growth of labor unions. B. management that pushes workers to work longer and harder. C. elimination of unemployment benefit programs. D. increased education and improved equipment.