Economists suggest that a market can fail if
A. consumers have to pay more than they want to.
B. the good or service is such that consumers are unable to make well-informed decisions about its consumption.
C. producers get smaller profits than they desire.
D. governments dictate prices.
Answer: B
You might also like to view...
If the marginal cost of producing every quantity decreases, all the following occur EXCEPT
A) minimum supply price does not change. B) the marginal social benefit of the last unit bought changes. C) the consumer surplus increases. D) the efficient quantity increases.
The poverty line is the income level
a. earned by a worker employed full-time at the minimum wage. b. below which a family is officially considered "poor." c. above which a family is not entitled to government assistance. d. that is the average for American families.
Assume that Down Slope specializes in producing snow boards and Seven Seas specializes in producing scuba tanks. After trade, Down Slope exports 2,000 snow boards and imports 400 scuba tanks. The terms of trade
A. are 5:1 snow boards to scuba tanks. B. are 1/5:1 snow boards to scuba tanks. C. are 1:5 snow boards to scuba tanks. D. cannot be determined from this information.
Disposable personal income is
a. the total income earned by a nation's permanent residents. b. the total income earned by a nation's residents in the production of goods and services. c. the income that households and non-corporate businesses receive. d. the income that households and businesses have remaining after satisfying their obligations to the government.