Which of the following is possible when the market fails?
A. It is impossible for government intervention to improve the mix of goods and services.
B. The mix of goods and services is the optimal mix.
C. The mix of goods and services is at the correct point on the production possibilities curve.
D. The mix of goods and services is on the production possibilities curve.
Answer: D
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The successor organization to GATT that handles trade disputes among its member nations is the
A) World Trade Organization. B) European Union. C) General Agreement on Tariffs and Trade. D) North American Free Trade Agreement.
For a monopoly, the level of output at which marginal revenue equals zero is also the level of output at which
a. average revenue is zero. b. profit is maximized. c. total revenue is maximized. d. marginal cost is zero.