An example of a market failure is when:

A. one person’s consumption of a good imposes costs on others
B. a firm selling a product faces competition from many other sellers.
C. a good is priced too high for poor families to afford.
D. the distribution of surplus is unfair.


A. one person’s consumption of a good imposes costs on others

Economics

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Supposing the market price for a price taking firm is known to be $5, the total revenue accruing to it if it sells 100 is ________ and the total revenue accruing to it if it sells 200 is ________.

A. $500; $1000 B. $500; $500 C. $5; $5 D. $100; $200

Economics

In the Keynesian theory, output and employment in the economy depend

A. directly on the level of total expenditures. B. inversely on the quantity of resources available to it. C. directly on the level of disposable income. D. directly on the rate of interest.

Economics

Since 1802, the average annual compound return for stock holdings, adjusted for inflation, has been approximately

a. 2 percent. b. 7 percent. c. 15 percent. d. 30 percent.

Economics

Real income in yearX equal to:

a. x 100 b. c. x 100 d. yearX nominal income x CPI.

Economics