Market failure means that
A. the law of supply and demand has stopped functioning.
B. resources are not allocated efficiently.
C. the stock market has crashed.
D. prices are no longer reliable indicators of how much things cost.
B. resources are not allocated efficiently.
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Cash may be preferred to food stamps because additional cash
A) rotates the budget constraint. B) shifts out the budget constraint at every point. C) provides a smaller opportunity set. D) allows the purchase of more food.
An import quota is a
a. legal limit on the quantity of a good that can be imported per year b. legal requirement that a specified percentage of a final good's value must be produced domestically c. legal requirement that exports to a certain country must exceed a specified value before that country's product may be imported d. percentage tax on an imported product e. lump-sum tax on an imported product