Market failure occurs when
A) the price system fails to generate an efficient allocation of resources.
B) the price system fails to generate an equal distribution of income.
C) the price system fails to generate an equal distribution of wealth.
D) the price system allows consumers to make their own decisions.
Answer: A
You might also like to view...
Monopsonistic exploitation is
A) measured by the area above the supply curve but below the wage paid. B) the difference between the marginal revenue product of a worker and the wage received by the worker. C) measured by the height of the supply curve of labor. D) the cost to society from unions.
Which of the following is true?
A. Monopolists never lose money in the short-run or long-run. B. Monopolies can only be overcome by government action. C. Having a recognizable brand name is a barrier to entry that can preserve monopoly power. D. Patents are granted to investors who have control over an essential resource.
What would be the Nash equilibrium of this simultaneous game?
a. Hit, Tell b. Not hit, Tell c. Hit, Not tell d. Both B&C
When box lunches are handed out at an elementary school, Jimmy (who loves chocolate and hates raisins) gets a raisin cookie and Johnny (who hates chocolate and loves raisins) gets a chocolate chip cookie. This is an example of inefficiency in
A. output selection. B. production planning. C. product distribution. D. market segmentation.