An imperfection in the market mechanism that prevents optimal outcomes is called
A. Price leadership.
B. Collusion.
C. Antitrust behavior.
D. Market failure.
Answer: D
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An embargo is a prohibition against trading particular goods.
Answer the following statement true (T) or false (F)
Which of the following is not the case when social costs are greater than private costs?
A. There is market failure. B. Resources are allocated efficiently. C. External costs exist. D. The market's price signals are flawed.
The situation where a single firm can supply the product to an entire market at a lower unit cost than if the market were split among a number of competing firms, is called a:
A. Dominant firm oligopoly B. Structured market C. Natural monopoly D. Trust
Overfishing and extinction of species arise because of:
a. an abundance of natural resources. b. communist countries. c. the lack of incentive to take care of these species. d. private ownership of these resources. e. a high degree of economic freedom in all countries.