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+--- Thread: Economics Help!!!!!!!!!? (/thread-58484.html)
Economics Help!!!!!!!!!? - Zachary - 01-28-2013 10:05 PM
Which of the following happens when there are market failures?
A. Firms compete more leading to more efficiency.
B. The invisible hand automatically lowers prices and increases quality of products.
C. The private sector promotes competition
D. The public sector steps in to better allocate resources
E. Firms temporarily seek society’s goals rather than maximize profit.
Negative externalities result in:
A)spillover benefits to society.
B)the government providing subsidies
C)underallocation of resources
D)overallocation of resources
E)efficient use of society’s resources
A negative externality or spillover cost occurs when:
A)firms fail to achieve allocative efficiency.
B) firms form a monopoly and purposely holds back production.
C) the total cost of producing a good exceeds the costs borne by the producer.
D)the supply curve for a firm equals the marginal cost curve above average variable cost.
- Anjaree - 01-28-2013 10:13 PM
1. D, I do hope so that we have a great government.
2. D. it causes an overproduction because the marginal private cost is smaller than the marginal social cost.
3. C. the same reason as 2.