If Country M has greater income inequality than Country H, which of the following must be true?

Country M will have a higher population than Country H.

Country M will have a lower population than Country H.

Country M will have a higher Gini coefficient than Country H.

Country M will have a lower Gini coefficient than Country H.

Country M will have more people in poverty than Country H.

Which of the following is true of market social equilibrium if third parties, people outside the market for a good, bear part of the cost of the good's production?

Socially optimal quantity will be greater than the private quantity, and the socially optimal price will be greater than the private price.

Socially optimal quantity will be less than the private quantity, and the socially optimal price will be greater than the private price.

Socially optimal quantity will equal the private quantity, and the socially optimal price will equal the private price.

Socially optimal quantity will be less than the private quantity, and the socially optimal price will be less than the private price.

Socially optimal quantity will be greater than the private quantity, and the socially optimal price will be less than the private price.

Which of the following is a reason for increased income inequality?

Market forces lead to highly diverse marginal revenue products based on the goods and services provided by laborers.

There is a decrease in the productive capacity of capital so that wages and salaries are instead paid to an improving labor force.

Taxes on earnings are collected each year and the amount per worker is based on a progressive calculation.

Market wages are rising, and so the unemployed are incentivized to find a job.

The structure of the labor union is reorganized such that their bargaining power is increased significantly.

Which of the following prevents private market negotiations from adequately addressing an externality?

Unclear property rights

Perfect competition

Allocative efficiency

Low or zero transaction costs

Perfectly symmetric information

Why do private businesses underproduce public goods?

They are non-excludable, and so it is difficult to earn profits by producing the good.

They are rivalrous, and so only one producer can supply the good.

They are excludable, and so there are too few consumers available to buy the good.

They are non-rivalrous, and so market power will limit output of the good.

They are non-affordable, and so there are no consumers willing to purchase the good.