Market Failures

question 100

Multiple Choice

Market failures:

• A) can always be corrected through government action.
• B) can never be corrected through government action.
• C) are sometimes made worse by government failures.
• D) lead to a desired allocation of resources.

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Definitions:

Labor Supplied

Represents the total hours that workers are willing and able to work at a given wage rate.

Leisure

free time when individuals are not working, available for relaxation or activities of personal choice.

Normal Good

A good for which demand increases as the income of consumers increases and vice versa.

Demand for Leisure

The desire for free time in which one can enjoy personal activities outside of work.