Market failure occurs when
A) a good is too expensive for the market to provide.
B) an unrestrained market economy leads to too few or too many resources going to a specific economic activity.
C) one good is superior to another and drives it out of the market.
D) the stock market experiences a very large loss.
B
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"Beaten paths" in the context of labor migration are:
A. Routes taken previously by family, relatives, and friends B. Routes that have been "over used" by previous immigrants C. Routes that are no longer followed by immigrants D. Typical methods used to increase human capital
The incidence of a tax explains what group pays the burden of a tax
a. True b. False Indicate whether the statement is true or false
The present value of a payment to be made in the future falls as
a. the interest rate rises and the time until the payment is made increases. b. the interest rate rises and the time until the payment is made decreases. c. the interest rate falls and the time until the payment is made increases. d. the interest rate falls and the time until the payment is made decreases.
Describe the policy ineffectiveness proposition (PIP). Be sure to state which economic theory the PIP is associated with and the assumptions that are necessary for this argument to hold