What is a market failure?
A) It refers to the inability of the market to allocate resources efficiently up to the point where marginal social benefit equals marginal private cost.
B) It refers to a breakdown in a market economy because of widespread corruption in government.
C) It refers to the inability of the market to allocate resources efficiently up to the point where marginal social benefit equals marginal social cost.
D) It refers to a situation where an entire sector of the economy (for example, the airline industry) collapses because of some unforeseen event.
C
You might also like to view...
In 2010, of the following which nations had the highest level of real GDP per person?
A) Japan B) Europe Big 4 C) Canada D) China
Firms in Thailand that had borrowed dollars while the baht was pegged to the dollar faced interest payments that were ________ than they had planned because the baht had been pegged ________ the equilibrium exchange rate for the baht
A) higher; below B) lower; below C) lower; above D) higher; above
Individuals conscripted into military service _____
a. are forced to work for less than the market wage b. bear a heavy tax burden c. are not necessarily those with a comparative advantage in being a soldier d. all of the above
The exchange rate is the
a. value of money b. quantity of dollars, yen, etc., that are traded c. amount of a foreign currency that is used to buy goods made in your country d. number of units of your currency that it takes to buy one unit of a foreign currency e. number of units of a foreign currency that can be bought with one unit of your own currency