A. externalities
B. the free-rider problem
C. a and b
D. a and c
Related Mcqs:
- Markets fail to produce an efficient allocation of resources, but government also fail because ?
A. elected officials will act selflessly for the good of society and ignore their own self interest
B. the managers of government agencies are trying to maximize the profit of their agency and they ignore the implications that this has on other departments
C. the optimal level of public goods may be too expensive for the society to produce
D. the measurement of social damages and benefits is difficult and imprecise - When markets fail to allocate resources efficiently, the ultimate source of the problem is usually ?
A. government regulation
B. that prices are not low enough so firms over produce
C. that prices are not high enough, so people overconsume
D. that property rights have not been well established - In certain industries Japanese employers hesitate to lay off workers Therefore they sometimes have excess supplies of goods that they cannot sell on the home market without lowering prices. To hold down losses they sell goods in overseas markets at prices well beneath those in japan This practice is best referred to as ?
A. Orderly marketing
B. trigger pricing
C. domestic content pricing
D. dumping - Which of the following government policies would fail to lower the unemployment rate ?
A. Establishing worker training Programs
B. Establishing right-to-work laws
C. Reducing unemployment benefits
D. Establishing employment agencies
E. Raising the minimum wage - The World Trade Organization is sometimes criticized for all of the following reasons except?
A. it reduces the sovereignty of member countries
B. favors free trade over the quality of the environment
C. it has no way to solve trade disputes among member countries
D. it is a puppet of multinational corporations - International trade in goods and services is sometimes used as a substitute for all of the following except ?
A. International movements of capital
B. International movements of labor
C. International movements of technology
D. Domestic production of different goods and services - Arguments for free trade are sometimes disregarded by politicians because ?
A. Maximizing domestic efficiency is not considered imports
B. Maximizing consumer welfare may not be a chief priority
C. There exist sound economic reasons for keeping one’s economy isolated from other economies
D. Economists tend to favor high protected domestic markets - Marketers are sometimes accused of deceptive practices that lead consumers to believe they will get more value than they actually do. _____ includes practices such as falsely advertising factory of wholesale prices or a large price reduction from a phony high retail price ?
A. Deceptive promotion
B. Deceptive packaging
C. Deceptive pricing
D. Deceptive cost structure - _________ is said to exist when the formation of a regional trading group leads to an expansion of trade above pregroup levels ?
A. trade creation
B. trade diversion
C. trade exclusion
D. trade distortion - When ________ substitutes exist, a monopolist has ________ power to raise price?
A. more; more
B. fewer; less
C. more; less
D. no; infinite
