An example of a market failure is
A) a firm is dumping toxic waste that is making people sick.
B) when not everyone who wants to see a major league football game can.
C) when there is an increase in demand and a shortage develops.
D) unemployment.
A
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In the liquidity trap, monetary policy
A) has a large impact on interest rates. B) has a small impact on interest rates. C) has no impact on interest rates. D) has a proportionate impact on interest rates.
AZT is a drug that inhibits the reproduction of the AIDS virus, thus preventing the full development of the disease. The drug, which is sold in an unregulated market, is very expensive, and many AIDS patients who cannot afford it die from the disease. This case provides ammunition to critics of the market system on the basis of its
A. fairness. B. externalities. C. cost disease in services. D. inefficiency.
If the MPC is 0.67, then the oversimplified multiplier is
A. 7.60. B. 6.70. C. 3.00. D. 33
?Suppose Ripco owns the building from which it operates. If:
a. ?its usage of the building precludes it from renting to anyone else, there is an opportunity cost. b. ?the firm pays rent, there is an opportunity cost. c. ?the firm pays no rent, there is no opportunity cost. d. ?the firm does not rent the building to anyone else, there is no opportunity cost. e. ?the firm can use the building for other things, there is no opportunity cost.