Homework answers / question archive /   Demand-side market failures occur when: A) government imposes a tax on a good or service

  Demand-side market failures occur when: A) government imposes a tax on a good or service

Economics

Share With

Demand-side market failures occur when: A) government imposes a tax on a good or service. B) a good or service is not produced because no one demands it. C) the demand and supply curves don't reflect the full cost of producing a good or service. D) the demand and supply curves don't reflect consumers' full willingness to pay for a good or service. People enjoy outdoor holiday lighting displays and would be willing to pay to see these displays but can't be made to pay. Because those who put up lights are unable to charge others to view them, they don't put up as many lights as people would like. This is an example of a: A) supply-side market failure. B) demand-side market failure. C) government failure. D) negative externality. Supply-side market failures occur when: A) government regulates production of a good or service. B) the demand and supply curves don't reflect consumers' full willingness to pay for a good or service. C) a good or service is not supplied because no one wants it. D) the demand and supply curves don't reflect the full cost of producing a good or service. The trains of the Transcontinental Railway Company, when shipping goods, sometimes emit sparks that start fires along the tracks and damage the property of others. If Transcontinental does not pay for the damage it causes, what has occurred? A) Demand-side market failure. B) Supply-side market failure. C) Positive externality. D) All of these. Macroeconomics is mostly focused on: A) only the largest industries in the economy. B) why specific businesses fail. C) the individual markets within an economy. D) the economy as a whole. The two topics of primary concern in macroeconomics are: A) oil prices and housing markets. B) monopoly power of corporations and small business profitability. C) unemployment and wage rates in labor markets. D) short-run fluctuations in output and employment and long-run economic growth.