Which of the following is a situation that makes the market behave inefficiently?
a) when consumers do not have enough information to make good choices
b) when the producers have the power to find out exactly what to produce
c) when both consumers and producers are fully informed about a product
d) when the market is in perfect competition and prices are high
Ans: a) when consumers do not have enough information to make good choices
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Double taxation refers to
A) individuals paying taxes on wage income and individuals paying taxes on dividends. B) corporations paying taxes on capital gains and individuals paying taxes on wage income. C) corporations paying taxes on profits and individuals paying taxes on dividends. D) corporations paying taxes on profits and individuals paying taxes on wage income.
Economists will often argue that an individual trade barrier designed to help a particular industry will work even though on net it won't help the economy as a whole. Explain what this means
What will be an ideal response?