Information asymmetry in a market can lead to ________
A) a market failure
B) the paradox of thrift
C) the free-rider problem
D) a tragedy of the commons
A
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When the production of a good creates an external cost, by setting the tax rate equal to the ________, firms can be made to behave in the same way as they would if they bore the cost of the externality directly
A) marginal external cost B) marginal social benefit C) marginal private benefit D) marginal social cost
Refer to Figure 6.4. If the price of computers is $1,500, then consumer surplus is equal to:
A. $175,000.
B. $535,000.
C. $1,000.
D. $262,500.
Refer to the graph shown. Which of the following wage rates would be an effective price floor?
A. $3.50 B. $4.50 C. $7.25 D. $6.50
In breaking up the Standard Oil Company, the U.S. Supreme Court established that a company's violation of the Sherman Antitrust Act was determined by:
A. whether or not the firm engaged in "unfair business practices." B. the structure of the industry. C. the percentage of the market controlled by the firm. D. concentration ratios.