Question 1 Two important causes of market failure are: Not yet answered O a. externalities and increases in prices Marked out of O b. market power and increases in poverty 1.00 O c. externalities and market power Flag question O d. increases in poverty and increases in prices Question 2 The two best reasons for a government to intervene in a market are to: Not yet answered O a. promote equity and to promote efficiency Marked out of O b. promote equity and to raise revenues 1.00 O c. promote efficiency and to raise revenues Flag question O d. raise revenues and to promote stability Question 3 The main motivation behind the invisible hand is: Not yet answered O a. business ethics Marked out of 1.00 O b. the legal system Flag question O c. self-interest O d. the threat of government intervention