Market failures
A) are usually caused by government interference in the economy.
B) prevent the price system from attaining economic efficiency.
C) encourage people to purchase more of a good than they really want.
D) encourage businesses to produce more of a good than they really want to.
Answer: B
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Why are firms in monopolistic competition unable to make an economic profit in the long run?
What will be an ideal response?
Which of the following is not an advantage of cost-plus pricing?
A) If a firm is selling multiple products, it ensures that the firm's prices will cover costs that are difficult to assign to one product. B) It ensures that the firm will maximize its profits. C) It is easy to calculate. D) It requires little information.
The investment component of GDP includes
a. residential construction investment. b. inventory investment. c. business fixed investment. d. Both b and c e. All of the above
When total planned expenditures are more than real GDP, there will be inventory accumulation
a. True b. False Indicate whether the statement is true or false