market failure

What is the main cause of market failure in resource allocation?

• Information asymmetry

• Externalities

• Monopoly power

• Imperfect competition

A number of governments, including Singapore and the UK, have introduced ___ schemes.

When people are thinking of making a trip in their car, they take into account the private costs and benefits, that is the cost and benefits to themselves..

What is the relationship between the benefit society gains and the cost of producing more output in the context of social optimum output and market failure?

What is an example of a situation where the social cost exceeds the social benefit?

What does it imply if the social cost exceeds the social benefit?

• Too many resources are being devoted to the production of the product

• Society would benefit from reducing its output

• The product is not in demand in the market

• The product is not meeting the quality standards

What is the condition for socially optimum output?

• When the social benefit of the last unit produced is equal to the social cost of that unit

• When the social benefit exceeds the social cost

• When the social cost exceeds the social benefit

• When the social benefit is irrelevant