If the Demand Curve Fails to Capture All of the Benefits

question 139

Multiple Choice

If the demand curve fails to capture all of the benefits of consumption, then the:

• A)equilibrium price will be efficient but the equilibrium quantity will be inefficiently large.
• B)equilibrium price will be inefficiently low.
• C)government needs to impose regulations that require more consumption.
• D)equilibrium price will be inefficiently high.

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Definitions:

Bargaining Units

Groups of employees with a clear community of interests, represented by a single labor union in collective bargaining agreements with their employer.

NLRB

The National Labor Relations Board, an independent agency of the United States government charged with enforcing US labor law in relation to collective bargaining and unfair labor practices.

SEIU

The Service Employees International Union, a labor union representing almost 2 million workers in the United States and Canada in healthcare, public services, and property services.

University Faculty

A group of educators and academic staff involved in teaching and research at colleges or universities.