Category: Market

A. There is under-consumption in the free market
B. There is over consumption in the free market
C. The government may tax to decrease production
D. Society could be made off it less was produced

A. moral hazard
B. risk aversion
C. adverse selection
D. a poor gamble

A. long run marginal cost
B. short run marginal cost
C. long run average cost
D. long run marginal cost

A. The price elasticity of supply is price inelastic
B. The price elasticity of supply is price elastic
C. The price elasticity of supply is perfectly elastic
D. The price elasticity of supply is infinity

A. there is a shortage and the price will rise
B. the quantity demanded is equal to the quantity supplied and the price remains unchanged
C. there is a shortage and the price will fall
D. there is a surplus and the price will rise

A. The social marginal costs are higher than the private marginals costs
B. A product is not provided in the free market
C. The social marginal cost equal the social marginal benefit
D. The social marginal benefits are higher than the private marginal benefits

A. externality
B. market imperfection
C. deadweight burden
D. free rider

A. Negative externalies
B. Positive externalities
C. Monopolies
D. Oligopolies

A. an increase in the price of watches
B. none of these answers
C. a decrease in the price of watch batteries if watch batteries and watches are complements
D. a decrease in consumer incomes if watches are a normal good
E. a decrease in the wage of workers employed to manufacture watches

A. None of these answers
B. decreases the quantity supplied of that good
C. decreases the quantity demanded for that good
D. increases the quantity supplied of that good