A market failure:
A. is a source of inefficiency in an imperfectly competitive economy.
B. can always be corrected by government intervention.
C. cannot be corrected.
D. is a theoretical proposition that has never been proven to exist.
A. is a source of inefficiency in an imperfectly competitive economy.
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A firm operating in competitive input and output markets purchases new technology, which shifts the total product schedule from A to B, as shown in the data below.Schedule ASchedule BNumber of WorkersTotal ProductNumber of WorkersTotal Product130135240247348357454465559571663676At the market wage rate of $30 and product price of $5, this firm will
A. increase the number of laborers hired from 4 to 6. B. increase the number of laborers hired from 4 to 5. C. decrease the number of laborers hired from 4 to 3. D. hire the same number of laborers in both situations.
When the nominal price of a good increases over time, the real cost of buying the good
A) must increase. B) decreases because income also increases over time. C) does not change because income also increases over time. D) might increase, decrease, or stay the same depending on how much the CPI changed. E) might increase, decrease, or stay the same depending on how much income changed.
If demand for a product is perfectly inelastic, a change in price will not change total revenue
Indicate whether the statement is true or false
Economists have found that as a nation's per capita real Gross Domestic Product (GDP) increases
A) the rate of population growth declines. B) the rate of population growth experiences dramatic increases. C) there is no effect on population growth. D) the rate of population growth increases at the same rate as economic growth.