How do the concepts of market failure and failure of market outcome relate to the concept of economic efficiency?
A. Market failure means the economy is not economically efficient; failure of market outcome could happen even if the economy is economically efficient.
B. Both market failure and failure of market outcome could happen even if the economy is economically efficient.
C. Failure of market outcome means the economy is not economically efficient; market failure could happen even if the economy is economically efficient.
D. Both market failure and failure of market outcome mean that the economy is not economically efficient.
Answer: A
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Refer to Table 2-18. Which of the following statements is true?
A) Mickey has a comparative advantage in making both products. B) Minnie has a comparative advantage in making both products. C) Minnie has a comparative advantage in making hats and Mickey in making umbrellas. D) Mickey has a comparative advantage in making hats and Minnie in making umbrellas.
When John was in college and his income was low, he drank "Red Ribbon" beer. As his income increased, he purchased better-quality beer and less "Red Ribbon." Which graph in the above figure best represents John's Engel curve for "
A) Graph A B) Graph B C) Graph C D) Graph D
Taxes paid by companies on profits are corporate income taxes
a. True b. False Indicate whether the statement is true or false
What is Calvin’s opportunity cost to produce 3/4 pound of food?
a. 1/2 yard of cloth
b. 1 yards of cloth
c. 1-1/2 yards of cloth
d. 2 yards of cloth