Failure of market outcomes occurs when:
A. there are no market failures but the market is not achieving society's goals.
B. there are market failures such as externalities.
C. the market outcome is not Pareto optimal.
D. the market outcome is not efficient.
Answer: A
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Growth in total factor productivity equals the _____
a. sum of resource growth and economic growth b. ratio of total output to total input c. ratio of total input to total output d. percentage change in per capita real GDP e. percentage change in output minus the percentage change in resources
Tesla builds a new vehicle, and completes it in December 2015 . It sells the vehicle in January 2016 . The value of this vehicle affects U.S. GDP a. for 2015 only, since it was completed in December of 2015. b. for both 2015 and 2016
c. for 2016 only, when it is sold to the buyer. d. for neither year if it is sold to a citizen of Canada.
Assume consumers eat either rice or pasta for dinner every night. If the price of rice increases, then one would expect to see:
A. a decrease in the demand for pasta. B. an increase in the quantity of pasta demanded. C. an increase in the demand for pasta. D. a decrease in the quantity of pasta demanded.
Why are externalities associated with common property rather than private property?
What will be an ideal response?