What is a market failure?
A) It refers to the inability of the market to allocate resources efficiently up to the point where marginal social benefit equals marginal private cost.
B) It refers to a breakdown in a market economy because of widespread corruption in government.
C) It refers to the inability of the market to allocate resources efficiently up to the point where marginal social benefit equals marginal social cost.
D) It refers to a situation where an entire sector of the economy (for example, the airline industry) collapses because of some unforeseen event.
C
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A change in weather could ____
a) shift the long-run aggregate-supply curve. b) cause a left to right movement along the long-run aggregate-supply curve. c) cause a right to left movement along the long-run aggregate-supply curve. d) not change the long-run aggregate-supply curve.
According to the text, the federal government spends the most taxpayer-provided funds regulating which area of the economy?
A) the environment B) finance and banking C) consumer safety and health D) transportation