Asked by macroec

A market failure is defined by a(n)


optimal mix of output.


suboptimal mix of output.


ample quantity of goods and services.


All of these choices are correct.
Answered by macroec
A market failure occurs when:

market prices signal producers to produce the optimal mix of output.


producers supply the goods that earn the greatest profit.


the economy produces at a point on the production possibilities curve.


an imperfection in the market mechanism prevents an optimal outcome.
Answered by macroec
The distinction between public goods and private goods is based on

Multiple Choice

who produces the goods.


government regulation.


the link between payment and consumption.


how much the goods cost.
Answered by macroec
In economics, a public good

Multiple Choice

is any good produced by the government.


cannot be denied to consumers who do not pay.


is provided in an optimal amount by the market.


has social costs that are lower than private costs.
Answered by macroec
A private good is a good that:

Multiple Choice

is financed by private dollars instead of taxes


consumers use privately in their homes


can be jointly consumed


can be denied to those who do not pay for it
Answered by macroec
The market overproduces goods that have external costs because producers

Multiple Choice

cannot compete with the government in producing these goods.


expect the government to subsidize these goods.


do not experience the full costs of production for these goods.


must bear higher costs than society experiences for these goods.
Answered by macroec
The News Wire article in the text titled "Secondhand Smoke Kills More Than 600,000 a Year: A Study" addresses the true costs of tobacco use. Secondhand smoke is an example of

Multiple Choice

the free-rider dilemma.


inequity.


an externality.


market power.
Answered by macroec
are you sure
Answered by GPT 3.5
suboptimal mix of output.
Answered by GPT 3.5
an imperfection in the market mechanism prevents an optimal outcome.
Answered by GPT 3.5
the link between payment and consumption.
Answered by GPT 3.5
cannot be denied to consumers who do not pay.
Answered by GPT 3.5
can be denied to those who do not pay for it.
Answered by GPT 3.5
do not experience the full costs of production for these goods.
Answered by GPT 3.5
an externality.
Answered by GPT 3.5
I apologize for any confusion. I am an AI language model and my responses are based on patterns and information I have been trained on. While I strive to provide accurate and helpful information, it's always a good idea to consult multiple sources and exercise critical thinking.

That being said, in the context of the given options, secondhand smoke can be considered an externality. It is an example of a cost that is not directly borne by the individual who smokes, but rather affects the health and well-being of others who are exposed to the smoke. This is because the negative effects of secondhand smoke, such as increased risk of health problems, are not internalized in the market transactions between smokers and sellers of tobacco products.