A common theme among examples of market failure is
a. the good being provided harms society in some systematic way.
b. some item of value does not have an owner with the legal authority to control it.
c. cost-benefit analysis will show that private markets should provide the goods and services.
d. government intervention decreases the social benefits.
b
You might also like to view...
Which of the following is not a necessary characteristic of a perfectly competitive industry?
A. The industry or market demand is highly elastic. B. Consumers see no difference between the product of one firm and that of another. C. There are so many firms that none can influence market price. D. Firms can easily enter or exit the industry.
A corporation is a firm owned by
A) two or more owners who have unlimited liability. B) a single owner who has unlimited liability. C) at least 20 stockholders who have partially limited liability. D) stockholders who have limited liability.
If the total cost of producing 6 units is $228 and the total cost of producing 7 units is $245, what is the marginal cost of producing the seventh unit?
a. $35 b. $245 c. $3 d. $38 e. $17
In the market for British pounds, if the current exchange rate is above the equilibrium rate,
a. there is an excess supply of pounds and those who hold pounds will be able to sell them and make a profit b. there is an excess supply of pounds and the exchange rate will fall c. there is an excess demand for pounds and suppliers will not be able to supply enough pounds to meet the demand d. there is an excess demand for pounds and the exchange rate will rise e. the quantity of pounds supplied is barely sufficient to meet the quantity demanded