Question

which of the following can be used to correct market failure?
the market mechanism.
all of the other answers.
laissez - faire price policies.
laws and regulations.

question 9
1 pts
the opportunity cost of going to class is
the tuition for that class, but not the sleep you would have given up.
tuition, books, and the lost wages when a student is going to class.
the highest valued alternative to going to class.
the highest valued alternative to going to class plus the cost of tuition for that class.

question 10
1 pts
the opportunity cost of going to class is
the highest valued alternative to going to class.
the highest valued alternative to going to class plus the cost of tuition for that class.
the tuition for that class, but not the sleep you would have given up.
tuition, books, and the lost wages when a student is going to class.

Explanation:

• Question 8: Market failure occurs when the market mechanism fails to allocate resources efficiently. Laissez - faire policies rely on the free - market and do not correct market failures. Laws and regulations can be used to correct externalities, monopolies, and other market failures. The market mechanism itself cannot correct its own failures.
• Question 9 & 10: Opportunity cost is defined as the highest - valued alternative forgone. When going to class, it is the value of the best alternative activity that a student could have done instead, not including the tuition cost which is a sunk cost in the context of the decision to go to class at a particular time.

Answer:

Question 8: D. Laws and regulations
Question 9: C. the highest valued alternative to going to class
Question 10: C. the highest valued alternative to going to class