- 9.1: Which of the following is an example of a positiveexternality? a. t...
- 9.2: If the supplier of a good cannot prevent peoplewho dont pay for the...
- 9.3: A good that benefi ts people whether or not theyhave paid for it an...
- 9.4: The tragedy of the commons occurs when goods are a. nonexcludable a...
- 9.5: Which of the following is a source of market failure? a. asymmetric...
- 9.6: If the government wanted to correct for a negativeexternality by im...
- 9.7: If the government wanted to correct for a positiveexternality, it w...
- 9.8: Which of the following is a source of governmentfailure? a. logroll...
- 9.9: Which of the following is an example of a negativeexternality? a. A...
- 9.10: If one persons consumption of a good preventsothers from consuming ...
Solutions for Chapter 9: Market Failure and Government Failure
Full solutions for Explorations in Economics | 1st Edition
ISBN: 9780716701071
Solutions for Chapter 9: Market Failure and Government Failure
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Solutions for Chapter 9
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Chapter 9: Market Failure and Government Failure includes 10 full step-by-step solutions. This textbook survival guide was created for the textbook: Explorations in Economics, edition: 1. Since 10 problems in chapter 9: Market Failure and Government Failure have been answered, more than 2620 students have viewed full step-by-step solutions from this chapter. This expansive textbook survival guide covers the following chapters and their solutions. Explorations in Economics was written by and is associated to the ISBN: 9780716701071.
Key Business Terms and definitions covered in this textbook
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average total cost
total cost divided by the quantity of output
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benefits principle
the idea that people should pay taxes based on the benefits they receive from government services
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Coase theorem
the proposition that if private parties can bargain without cost over the allocation of resources, they can solve the problem of externalities on their own
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commodity money
money that takes the form of a commodity with intrinsic value
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Condorcet paradox
the failure of majority rule to produce transitive preferences for society
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depreciation
a decrease in the value of a currency as measured by the amount of foreign currency it can buy
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discrimination
the offering of different opportunities to similar individuals who differ only by race, ethnic group, sex, age, or other personal characteristics
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exports
goods produced domestically and sold abroad
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imports
goods produced abroad and sold domestically
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indexation
the automatic correction by law or contract of a dollar amount for the effects of inflation
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internalizing the externality
altering incentives so that people take account of the external effects of their actions
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law of supply and demand
the claim that the price of any good adjusts to bring the quantity supplied and the quantity demanded for that good into balance
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marginal tax rate
the amount that taxes increase from an additional dollar of income
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perfect complements
two goods with right-angle indifference curves
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producer surplus
the amount a seller is paid for a good minus the seller’s cost of providing it
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scarcity
the limited nature of society’s resources
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shoe-leather cost
the resources wasted when inflation encourages people to reduce their money holdings
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total revenue (for a firm)
the amount a firm receives for the sale of its output
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union
a worker association that bargains with employers over wages, benefits, and working conditions
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welfare economics
the study of how the allocation of resources affects economic well-being