Additional questions&answers for PS7

Additional questions&answers for PS7 - ADDITIONAL...

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1 ADDITIONAL MULTIPLE CHOICE QUESTIONS FOR PS-7 1. The term market failure refers to a. The impossibility of achieving perfect competition in real markets b. The failure of markets to arrive at equilibrium, causing shortages and surpluses c. The failure that occurs when resources are misallocated, or allocated inefficiently.The result is waste or lost value. d. The restrictions imposed by government, which prevent markets from producing the right mix of output. 2. Which of the following(s) is/are source(s) of market failure? a. The failure that causes public goods to evolve. b. Imperfect information. c. Externalities. d. Imperfect markets e. All of the above. 3. Which of the following occurs in a private market system? a. The market system often ignores the social costs or benefits of market transactions . b. The market system has an automatic mechanism that provides decision makers an incentive to consider external effects. c.
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This note was uploaded on 01/05/2012 for the course ECON 101 taught by Professor Gulipektunc during the Spring '11 term at Middle East Technical University.

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Additional questions&answers for PS7 - ADDITIONAL...

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