Which one of the following is not a source of market failure?
A. price increases
B. public goods
C. externalities
D. imperfect information
Answer: A
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How would you measure the price of an hour of leisure? Explain
What will be an ideal response?
Suppose you and your friend are in a shopping mall and you borrow $100 from your friend to pay for a pair of shoes that you purchase in a shop. This is an example of
A) direct financing. B) indirect financing. C) moral hazard. D) transaction costs.
In the short run average costs eventually increase because of ________, and in the long run average costs eventually increase because of ________.
A. diseconomies of scale; diminishing returns B. constant returns to scale; decreasing returns to scale C. increasing returns to scale; diseconomies of scale D. diminishing returns; diseconomies of scale
In the long run
A) fixed costs tend to be greater than variable costs. B) variable costs tend to be greater than fixed costs. C) all costs are fixed costs. D) all costs are variable costs.