Chapter 9, Problem 4QFD

The government addresses market failures when it enforces property rights. True or False

Explain the measures used by the government to correct each of the following sources              of market failure:              (i) demerit goods              (ii)  Negative externality

Government intervention is one possible solution for market failure. What is one possible reason why a government controlled used car market may not provide an efficient outcome?

Explain the measures used by the government to correct each of the following sourcesof market failure :(i) demerit goods(ii) Negative externality Explain the concept of market failure.

Which of the following is a positive externality from education? a.Better-educated people make their coworkers more productive. b.Better-educated people tend to earn higher wages. c.Better-educated people live longer than less educated people. d.Better-educated people are less likely to vote and participate in a democracy.

Which of the following is NOT an example of government intervention in the market? a. Corporate social responsibility  b. Use of competition policy to prevent mergers  c. Regulation prices  d. Legislation banning the sale of the product

As it relates to a public good, nonrivalry means that: the public sector is able to provide the good profitably. there is no need or demand for the good. either the public sector or the public sector can produce the good, but not both. one person's benefit from the good does not reduce the benefit available to others.

Sources of market failure include all of the following except   options:   taxes.   positive externalities.   negative externalities.   poorly defined or lack of property rights.    .

Explain the concept of market failure and its implications for both governments and businesses