Which of the following is not the case when social costs are greater than private costs?
A. There is market failure.
B. Resources are allocated efficiently.
C. External costs exist.
D. The market's price signals are flawed.
Answer: B
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In a closed economy, national saving
A) sometimes equals investment. B) always equals investment. C) is always less than investment. D) is always more than investment. E) is never equal to investment.
The time required for a new fiscal policy to have the desired effect on the economy after implementation is called the
A. political lag. B. impact lag. C. recognition lag. D. decision lag.
Changes in business inventories will be positive when
A) production exceeds sales. B) production is less than sales. C) a trade surplus exists. D) a budget surplus exists.
Input demand is derived demand in the sense that it is dependent upon the productivity of the input.
Answer the following statement true (T) or false (F)