Demand-side market failures refer to those situations when there is a shortage in the market because buyers want to buy more than what is available in the market.
a. true
b. false
Answer: b. false
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Economists assume that, in general, when individuals are faced with two choices that have the same expected value, they will prefer:
A. the one with higher risk. B. the one with lower risk. C. the one with the higher opportunity cost. D. the one with the lower future value.
"Leaning against the wind" is exemplified by a(n)
a. tax increase when there is a recession. b. increase in the money supply when there is a recession. c. decrease in government expenditures when there is a recession. d. All of the above are correct.
Refer to the above figures. Which panel represents the expected relationship between tax revenue and the sales tax rate if static tax analysis is used?
A. Panel 1 B. Panel 2 C. Panel 3 D. Panel 4
If the social costs of refining oil are greater than the private costs of oil refining, then
A. users of products that use refined oil are paying too much for the products. B. the amount of oil refining needs to increase in order to bring social costs and private costs in line with each other. C. the external costs of oil refining are greater than the social costs of oil refining. D. there is too much oil refining.