5) When resources are misallocated, or allocated inefficiently, A) market failure occurs. B) then there must be external costs or benefits in production. C) then it must be the case that there is imperfect information in the market. D) then it must be the case that the good is a public good. Answer: ADiff: 2Topic: The Source of Market FailureSkill: DefinitionLearning Outcome: Micro-256) Market failure occurs when
7) The whole class of goods that will be underproduced or not produced at all in a completely unregulated market economy are referred to as 8) ________ is an example of a public good. 9) All of the following are trueabout public goods EXCEPT: A) bestow collective benefits on members of society.B) are non-excludable since those who do not pay for them cannot be excluded from enjoying them.C) will be under supplied by the private sector.D) are only produced by government agencies.Answer: DDiff: 1Topic: The Source of Market FailureSkill: ConceptualAACSB: Reflective ThinkingLearning Outcome: Micro-2310) Public goods are generally produced by
11) Because public goods are characterized by being collectively consumed,
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- Three '14
- Economics, AACSB, Reflective thinking