The presence of market failures implies that:
A. money is not an effective tool for exchange in a market system.
B. there is an active role for government, even in a market system.
C. individuals and firms should strive to be self-sufficient rather than specialize.
D. command systems are superior to market systems in the allocation of resources.
Answer: B
You might also like to view...
Which of the following is likely to shift the demand curve for workers in rice farms to the right, assuming all else equal?
A) A decrease in the price of rice B) An increase in the price of rice C) An increase in the wage rate D) A decrease in the wage rate
The word "fiat" is
A) used to describe today's money because it is money set by law. B) used to describe money from when Kings ruled by decree or fiat. C) the term used to define the concept of barter. D) another word to mean the "double coincidence of wants." E) Latin for "backed by gold."