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.
15 answers
suboptimal mix of output.
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.
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.
an imperfection in the market mechanism prevents an optimal outcome.
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.
Multiple Choice
who produces the goods.
government regulation.
the link between payment and consumption.
how much the goods cost.
the link between payment and consumption.
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.
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.
cannot be denied to consumers who do not pay.
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
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
can be denied to those who do not pay for it.
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.
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.
do not experience the full costs of production for these goods.
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.
Multiple Choice
the free-rider dilemma.
inequity.
an externality.
market power.
an externality.
are you sure
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.
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.
3 answers