When the market fails to promote the efficient use of resources by producing either more or less than the optimal output level, government involvement can improve outcomes when _____.
a. the market equilibrium does not result in the equal distribution of the output
b. there are externalities in production and/or consumption that are not captured by the parties involved in the transaction
c. firms have undue market power
d. there are barriers to entry that limit competition
e. asymmetric information characterizes the transaction
a. the market equilibrium does not result in the equal distribution of the output
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A reduction in the minimum wage will tend to cause which of the following?
A) a reduction in poverty B) an increase in the number of workers employed C) an increase in the quantity supplied of labor D) a reduction in the quantity demanded of labor
The increase in the unemployment rate during a recession is associated with which type of unemployment?
A. Structural unemployment B. Cyclical unemployment C. Nominal unemployment D. Frictional unemployment