Which of the following is an example of market failure?
A. Negative externalities.
B. Positive externalities.
C. Public goods.
D. All of these.
Answer: D
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Generally, when there is asymmetric information
A) a lender will only lend to the government. B) a lender will only lend to well-known borrowers. C) practical solutions are devised to allow lending to take place. D) a lender will cease all lending activities.
An indifference curve consists of quantity combinations of two goods that yield:
a. equal marginal utilities. b. negative marginal utilities. c. the same price ratios. d. the same total satisfaction.
In short-run equilibrium, it is always true that
A) quantity demanded of Real GDP = quantity supplied of Real GDP = Natural Real GDP. B) quantity demanded of Real GDP > quantity supplied of Real GDP. C) quantity demanded of Real GDP = quantity supplied of Real GDP. D) a and b E) There is not enough information to answer the question.
The growth rate of potential GDP is not affected by
A. the growth rate of the labor force. B. the growth rate of a nation’s capital stock. C. the rate of technological progress. D. environmentalists’ ability to pass regulations.