An example of a market failure is
A) a firm is dumping toxic waste that is making people sick.
B) when not everyone who wants to see a major league football game can.
C) when there is an increase in gasoline demand and a shortage develops.
D) when the market prices of some vehicles are too high for some buyers.
Answer: A
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Pollution problems are usually cases of good versus evil
Indicate whether the statement is true or false
Which of the following assertions is false?
A) The Great Depression was a typical business cycle. B) Very rapid growth occurred during World War II. C) Real GDP per capita dipped about 30% during the Great Depression. D) On average, the U.S. economy grows at a rate of 2.1%.
A monopolist's demand curve is
A) perfectly elastic. B) perfectly inelastic. C) of unit elasticity throughout. D) the industry demand curve.
Which of the following arguments is not used by promoters of globalization as one of the reasons why free trade and international investment result in higher standards of living?
a. Free trade helps developing countries. b. International organizations represent governments and people, not the interests of corporations. c. There is no convincing evidence that globalization occurs at the expense of the environment. d. There is no convincing evidence that globalization occurs by encouraging harmful labor practices. e. Globalization brings better cultural practices to countries that have obsolete cultural traditions.