Market failure means: The market equilibrium yields an allocationy inefficient quantity of output Firms are unable to maximize profits Externalities do not existA negative externality occurs when: The marginal social cost of some action exceeds the marginal private cost The marginal private cost of some action exceeds the marginal social cost The marginal social benefit of some action exceeds the marginal private benefit The marginal private benefit of some action exceeds the marginal social benefit'ositive externalities cause adverse outcomes on society because: Businesses are unable to maximize prots Economic agents do not take into account the positive spillovers their actions cause Consumers do not maximize utility The existence of negative externalities in a market leads to: Too much production of the product Just enough production of the product Not enough production of the product The price exceeding the marginal cost of the product Regulations that require firms to increase their costs by installing anti- pollution equipment (such as the Clean Air Act) are considered Marketable permit programs Command-and-control regulations Cap-and-trade SpilloversHidden attributes lead to A moral hazard Collateral An incomplete contract Adverse selection Choose the best answer. Regional environmental problems, like acid rain, are best addressed at the regional or national level because: The adverse effects of pollution are often felt in a different region or country than where the pollution originated, so the local authorities may not perceive it as a problem Local government authorities are unlikely to have the resources to deal with the problem Regional or national regulatory authorities are more likely to have the expertise to address the problem \fWhen the market provides everything, markets such as the illegal drug trade come into existence, these markets are also known as Adverse selections Moral hazards Negative external effects Repugnant markets Cap-and-trade is an example of a Command-and-control regulation Marketable permit program Public good Common-pool resourceWhen a market structure is characterized by a single buyer, buying a product (including labor) in the market, the market is a Monopsony Union Duopsony Free market If a labor market is perfectly competitive: Employers can hire all the workers they wish if they pay the going market wage Firms can sell all the output they produce if they charge the going market price Employees are represented by a union There will be only a few employers in the market Suppose a pandemic increases the need for active medical workers. The theory of labor markets would predict: An increase in unemployment for medical workers An increase in the number of hospitals and clinics An increase in the pay for medical workers A decrease in demand for medical care If a rm wants to maximize prots, the most it will pay a worker is: The minimum wage As little as the rm can get away with paying The amount of money the worker's output can be sold for The average of what competing rms pay their workers College-educated workers typically earn more than workers with only a high school degree because: They are worth more in terms of the value of their marginal product to their employers The high cost of college means college graduates must earn more to pay for their degree College-educated workers are more likely to obtain jobs requiring difcult, physical labor for which they must be compensated They are better equipped to negotiate with their employer For any level of production, a protmaximizing monopsonist will: Pay a lower wage than a perfectly competitive rm would pay Pay a higher wage than a perfectly competitive rm would pay Employ more workers than a perfectly competitive rm would hire A rm which is the sole employer in a labor market will nd that: The marginal cost of an additional worker is the same as its supply curve for labor The marginal cost of an additional worker is above its supply curve for labor The marginal cost of an additional worker is below its supply curve for labor A labor union: Acts like a monopolist by restricting the supply of labor to raise the wage rate Avoids collective bargaining, which gives employers the advantage Encourages employers' use of labor-saving technology since technology makes workers more productive Under bilateral monopoly: The employer wants to reduce the level of employment, but raise the wage they pay The union wants to raise the level of employment and the wage paid Both the employer and the union want to raise the wage paid Both the employer and the union want to reduce the level of employment Recent immigration into the United States has probably: Raised the cost of healthcare Lowered the price of consumer electronics like cell phones and computers Raised the property tax revenues collected by local governments Lowered the cost of lawn care, agricultural produce, and restaurant meals