Market failure can result from market outcomes that:
a. result in too few resources devoted to a good.
b. result in too many resources devoted to a good.
c. may justify government intervention.
d. all of these.
d
You might also like to view...
Suppose labor productivity differences are the only determinants of comparative advantage, and Brazil and Chile both produce only coffee and sugar. In Chile, either 5 units of coffee or 2 units of sugar can be produced in one day. In Brazil, a day of labor produces either 2 units of coffee or 1 unit of sugar. Which of the following statements is true?
a. Brazil has an absolute advantage in producing only coffee. b. Brazil has an absolute advantage in producing only sugar. c. Chile has an absolute advantage in the production of both coffee and sugar. d. Chile has an absolute advantage in producing only coffee. e. Brazil has an absolute advantage in the production of both coffee and sugar.
The most inclusive of all price indexes is
a. the GDP deflator b. the price level c. the CPI d. nominal index e. real index