QUESTION 9 Market failures occur when economic efficiency increases. there is an increase in demand. externalities...

QUESTION 9

Market failures occur when

economic efficiency increases.

there is an increase in demand.

externalities exist.

there is a change in quantity demanded.

Solutions

Expert Solution

Answer--Market failures occur when--Option C externalities exist because in this case market failure occurs due to the balance of the price of a product or service, which does not correctly represent correct costs and benefits of that goods or services.

Option A is an incorrect answer because economic efficiency does not create market failure ,by the economic efficiency markets becomes more strong.

Option B is an incorrect answer because if there is an increase in demand it will contribute towards economic development.

Option D is an incorrect because if there is a change in quantity demanded then it can have both results increase or decrease in the economic conditions.

Rahul Sunny answered 1 year ago

Next > < Previous

Related Solutions

Market failures Public and Externalities

Distinguish between demand-side and supply-side market failures and the kinds of externalities that are created by...

Distinguish between demand-side and supply-side market failures and the kinds of externalities that are created by each. In your own words explain the concept of consumer surplus. Graph it. In your own words explain the concept of producer surplus. Graph it. Identify and explain efficiency (or deadweight loss) using consumer and producer surplus. Explain how equilibrium achieves both productive and allocative efficiency.

When does advertising increase economic efficiency and when does it decrease economic efficiency? What does that...

When does advertising increase economic efficiency and when does it decrease economic efficiency? What does that mean for public policy?

Question 21 21) How would an increase in the demand for labor occur: a. when there...

Question 21 21) How would an increase in the demand for labor occur: a. when there is an increase in labor productivity b. when there is an increase in the demand for the product labor produces c. when there is an increase in the supply of labor d. both (a) and (b) 3 points Question 22 22) What determines the quantity supplied of labor? a, the wage rate b. the demand for labor c. the marginal revenue product of labor...

Explain how market failures such as externalities might justify economic functions of government Distinguish between private...

Explain how market failures such as externalities might justify economic functions of government Distinguish between private goods and public goods and explain the nature of the free-rider problem Discuss the central elements of the theory of public choice

Explain how, in the absence of market failures, efficiency as part of allocative efficiency in consumption...

Explain how, in the absence of market failures, efficiency as part of allocative efficiency in consumption is achieved. Explain, in the absence of market failures, efficiency in production (as part of allocative efficiency) is achieved Explain, and support graphically, the Coase theorem and specify the conditions necessary for it to hold

Write something about Covid-19 as it pertains to externalities and market failures. What is the market...

Write something about Covid-19 as it pertains to externalities and market failures. What is the market failure? What solutions can be enacted by public policy or already are being enacted to try and “fix” this externality.

Write something about Covid-19 as it pertains to externalities and market failures. What is the market...

Why are externalities referred to as "market failures?" Does the market system actually encourage this behavior?...

Why are externalities referred to as "market failures?" Does the market system actually encourage this behavior? Identify two possible solutions to externalities.

For this discussion assignment, you will be analyzing externalities and market failures. Name three examples of...

For this discussion assignment, you will be analyzing externalities and market failures. Name three examples of a negative externality. How do negative externalities directly and indirectly affect your life? Name three examples of a positive externality. How do positive externalities directly and indirectly affect your life? Provide a brief summary in your own words. What are your thoughts on the articles about coal? How does this relate to externalities and market failure? Provide a brief summary in your own words....

Subjects

		economic efficiency increases.
		there is an increase in demand.
		externalities exist.
		there is a change in quantity demanded.