The price of diamonds is high, in part because the majority of the world’s diamonds are controlled by a single firm. this is an example of a. a market failure caused by equality. b. a market failure caused by an externality. c. a market failure caused by market power. d. there is no market failure in this case.

True or flase? a. new technological developments can us adapt to depleting sources of natural resources. b. research and development funds from the government to private industry never pay off for the country as a whole; they only increase the profits of rich corporations. c. in order for fledgling industries in poor nations to thrive, they must receive protection from foreign trade. d. countries with few natural resources will always be poor. e. as long as real gdp (gross domestic product) grows at a slower rate than the population, per capita real gdp increases.

Who owns a renter-occupied apartment? a. the government b. a landlord c. the resident d. a cooperative

Both a demand curve and a demand schedule show how a. prices affect consumer demand. b. consumer demand affects income. c. prices affect complementary goods. d. consumer demand affects substitute goods.