Market failure occurs when resources are misallocated.

The standard of living rises at a slower pace than labor productivity if

A) n = q. B) n < q. C) n > q. D) The standard of living is not affected by the relative size of n and q.

An increase in uncertainty about the future will tend to ________ precautionary saving and ________ the desired level of wealth for households

A) increase; increase B) increase; decrease C) decrease; increase D) decrease; decrease