A market failure occurs when
a. shortages or surpluses of some good cannot be eliminated.
b. a private market cannot provide a good in socially efficient quantities.
c. consumers' surplus falls to zero.
d. property is privately owned and people behave competitively.
b. a private market cannot provide a good in socially efficient quantities.
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Of all the constant elasticity of substitution social welfare function, only the one with elasticity of infinity will always choose the efficient outcome from a second-best consumption possibility frontier.
Answer the following statement true (T) or false (F)
China has few state-owned enterprises left in its economy
Indicate whether the statement is true or false
Under the Articles of Confederation,
a. only the federal government could issue paper money. b. only the federal government had the power to levy taxes. c. the federal government was ultimately responsible any debts incurred by the states. d. the federal government had a difficult time negotiating military and economic treaties with other nations. e. All of the above.
The cost disease of personal services occurs when labor productivity in the general economy is
A. decreasing. B. increasing. C. increasing faster than in personal services. D. increasing slower than in personal services.