Market failure can be caused by
a. low consumer demand.
b. equilibrium prices.
c. externalities and market power.
d. high prices and foreign competition.
c
Economics
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The government announces a tax increase on workers' wages to take effect in the future. What happens to current employment and the real wage rate?
A) Both employment and the real wage rate would increase. B) Both employment and the real wage rate would decrease. C) Employment would increase and the real wage would decrease. D) Employment would decrease and the real wage would increase.
Economics
Which of the following is a shortcoming of GDP?
A. GDP excludes changes in inventories. B. GDP includes an estimate of illegal transactions. C. GDP excludes nonmarket transactions. D. GDP excludes business investment spending.
Economics