Externalities can cause the market mechanism to
a. malfunction.
b. improve.
c. operate efficiently.
d. move up toward the production possibility curve.
a
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Which of the following statements is true?
A) Both efficiency wages and minimum wages increase unemployment. B) Efficiency wages increase unemployment while minimum wages help reduce unemployment. C) Both efficiency wages and minimum wages help reduce unemployment. D) Efficiency wages help reduce unemployment while minimum wages increase unemployment.
The gap between the value a monopsony places on the last worker hired and the wage paid will increase when
A) the supply curve becomes more elastic at the optimum. B) the supply curve becomes less elastic at the optimum. C) the supply curve becomes horizontal. D) the value of the last unit of labor hired is greater than the cost.
According to the quantity theory of money, which one of the following economic variables would change in response to an increase in the money supply?
A. prices B. real income C. velocity D. employment
A binding price ceiling means that:
A. there is currently a surplus of the relevant product. B. government wants to stop a deflationary spiral. C. government is imposing a legal price that is typically below the equilibrium price. D. government is imposing a legal price that is typically above the equilibrium price.