1. In some blighted inner city neighborhoods, housing is inadequate, there are no large grocery stores, and no restaurants. The city is trying to recruit investors for each of these types of businesses. To do so the city will certainly need to overcome a(n) ________problem. Group of answer choices adverse selection incomplete market Imperfect information moral hazard   2. Suppose that a market is in equilibrium and there is no government intervention in the market. If the private marginal cost of producing an item is $6 and the social marginal cost of production is $4, there must be a _____ of $2. Group of answer choices mcd mpd mcb mpb

Essentials of Economics (MindTap Course List)
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ISBN:9781337091992
Author:N. Gregory Mankiw
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Chapter11: Public Goods And Common Resources
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1. In some blighted inner city neighborhoods, housing is inadequate, there are no large grocery stores, and no restaurants. The city is trying to recruit investors for each of these types of businesses. To do so the city will certainly need to overcome a(n) ________problem.

Group of answer choices

adverse selection

incomplete market

Imperfect information

moral hazard

 

2. Suppose that a market is in equilibrium and there is no government intervention in the market. If the private marginal cost of producing an item is $6 and the social marginal cost of production is $4, there must be a _____ of $2.

Group of answer choices

mcd

mpd

mcb

mpb

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