Which of the following statements about market failure is not true:
A. Market failure causes an inefficient allocation of resources, even in a competitive market
B. Market failure can come from causes on the demand-side or the supply-side of a market
C. Market failure always results from some government action or policy in a market
D. Market failure can result from the number of sellers in a market being too few to ensure competition
C. Market failure always results from some government action or policy in a market
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What did Milton Friedman and E.S. Phelps argue with respect to the Phillips Curve?
A) The inverse relationship between unemployment and inflation only holds in the long run. In the short run, unemployment and inflation are positively related. B) The inflation rate will consistently be 2 percentage points below the unemployment rate. C) Economic participants would soon understand activist policymakers' strategy and revise their expectations, making discretionary efforts to fine-tune the economy ineffective. D) The Phillips Curve could accurately guide activist policy makers over the long run.
A depreciation of Israel's currency (the shekel) means that
a. Israel's exports will become more expensive b. Israel's imports will become more expensive c. Israel's imports will become less expensive d. it now requires fewer shekels to exchange for one unit of another currency e. it now requires more of other currencies in exchange for one shekel