When goods are subject to market failure, all of the following are possible solutions to the market failure except:
A. privatize the good.
B. have government either regulate the market or provide the good.
C. set a very specific consumer quota on consumption.
D. change social norms.
Answer: C
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The quantity demanded of an input normally rises as its price rises
a. True b. False Indicate whether the statement is true or false
Which of the following is not an example of a compensating differential?
a. Chris is a consultant who is paid more than other workers with similar skills because he is required to travel 80% of the time. b. Abby is a teacher who is paid less than other workers with similar skills because she does not have to work during the summer months. c. Ben is a businessman who is paid more than other workers with similar skills because he graduated from a prestigious university with honors. d. Daphne is a skyscraper window-washer who is paid more than other workers with similar skills because of the risk she faces in her daily job.
A good time for an American to hold German stocks, ceteris paribus, is when the
A. Euro is stable compared to the U.S. dollar. B. The return in the German stock market has no relationship to the value of the dollar compared to the euro. C. U.S. dollar appreciates in value compared to the euro. D. U.S. dollar depreciates in value compared to the euro.
The costs associated with regulation are a source of government failure.
Answer the following statement true (T) or false (F)