Which of the following statements is not correct?
a. An invisible hand leads buyers and sellers to an equilibrium that maximizes total surplus.
b. Market power can cause markets to be inefficient.
c. Externalities can cause markets to be inefficient.
d. The invisible hand can remedy all types of market failures.
d
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Refer to Scenario 17.4. If the flood control system were in place, the firm could insure against a flood for an annual premium of
A) $5,000. B) $10,000. C) $100,000. D) $200,000. E) $1,000,000.
The decision concerning how the dollars left over from a defense cutback will be distributed is an example of
A. An implementation problem. B. A velocity problem. C. A design problem. D. A goal conflict.
The central function of the Fed is to help manage the macroeconomy by setting the interest rate.
Answer the following statement true (T) or false (F)
Which of the following is true?
A. An import quota generates government revenue. B. Tariffs on imports never generate government revenue. C. Tariffs on imports generate government revenue as long as the domestic price is larger than the world price plus the tariff. D. Tariffs on imports do not generate government revenue if the domestic price is larger than the world price plus the tariff.