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
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 - A graph showing all the combinations of goods and services that can be produced if all of society’s resources are used efficiently is a ?
A. capital consumption frontier.
B. Lorenz curve.
C. Circular-flow diagram.
D. Production possibility curve. - Markets sometimes fail to exist because of________?
A. externalities
B. the free-rider problem
C. a and b
D. a and c - The market efficiently allocates scarce resource among alternative ends such that ?
I- consumers receive goods for which they are willing to pay
II- Production resources hire out to maximize income)
III- the market determines available labor and capital
IV- the market distributes income among rich individualsA. III and IV only
B. II and III only
C. I, II and III only
D. I, II, III and IV - 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 - Term a tax that is levied by a country of source on income paid, usually on dividends remitted to the home country of the firm operating in a foreign country?
A. Wealth tax
B. Withholding tax
C. Income tax
D. None of these - The Ultimate effect of the invisible hand of Adam Smith is that in a competitive economy everyone ?
A. benefits if each acts in his/her own interest
B. will increase their profits in a free market
C. should act to maximize economic growth
D. should act to promote the public interest - An allocation is Pareto-efficient if no reallocation of resources would make some people _______ without making others ________?
A. worse off; worse off
B. better off; better off
C. better off; worse off
D. equal, unequal - Polish economist Oskar Lange’s model of decentralized ______ combined the advantages of market allocation with more uniform income distribution by dividing the returns from social ownership of nonhuman productive resources among the whole population ?
A. market socialism
B. capitalism
C. mixed economy
D. monopoly - Which one of the following four agricultural resources by way of crops cultivated by man does not belong to the group comprising the remaining three ?
A. Coffee
B. Fruits
C. Sugarcane
D. None of these
