Which of the following is the best example of a government effort to address market failure in relation to the FOR WHOM to produce question?
A. Transfer payments.
B. The production of goods that allow free riders.
C. Antitrust policy.
D. Regulations reducing pollution.
Answer: A
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The figure above shows the relationship between the time a student spends studying and the student's GPA that semester. The slope of the relationship at point A equals
A) 3. B) 3/20. C) 2/20. D) 1/20. E) 0.
Suppose firms A and B each make T-shirts. Firm A's production function is q = L0.5K0.5. Firm B's production function is q = 1.2 ? L0.5K0.5
If the two firms each hire the same amounts of capital and labor, compare the two firms in terms of APL and MPL.
Taxes cause:
a. Market distortions b. A reduction in incentives to work c. A decrease in wealth creating transactions d. All of the above
The precautionary principle is most likely to be applied when some impacts
a. Involve option values b. Are irreversible c. Are converted to present values d. Are estimated using the avoided cost approach e. Involve indirect use values