7 Governments can sometimes improve market outcomes。 Market failure may be caused by an externality which is the impact of one person or firm's actions on the well-being of a bystander
Harcourt, Inc. items and derived items copyright © 2001 by Harcourt, Inc. 7. Governments can sometimes improve market outcomes. Market failure may be caused by an externality, which is the impact of one person or firm’s actions on the well-being of a bystander
7 Governments can sometimes improve market outcomes Market failure may also be caused by market power, which is the ability of a single person or firm to unduly Influence market prices
Harcourt, Inc. items and derived items copyright © 2001 by Harcourt, Inc. 7. Governments can sometimes improve market outcomes. Market failure may also be caused by market power, which is the ability of a single person or firm to unduly influence market prices
8. The standard of living depends on a country's production. Standard of living may be measured in different ways o By comparing personal incomes. o By comparing the total market value of a nation’ s production
Harcourt, Inc. items and derived items copyright © 2001 by Harcourt, Inc. 8. The standard of living depends on a country’s production. Standard of living may be measured in different ways: By comparing personal incomes. By comparing the total market value of a nation’s production
8. The standard of living depends on a country's production Almost all variations in living standards are explained by differences in countries productivities
Harcourt, Inc. items and derived items copyright © 2001 by Harcourt, Inc. 8. The standard of living depends on a country’s production. Almost all variations in living standards are explained by differences in countries’ productivities
8. The standard of living depends on a country's production Productivity is the amount of goods and services produced from each hour of a workers time Higher productivity s Higher standard of living
Harcourt, Inc. items and derived items copyright © 2001 by Harcourt, Inc. 8. The standard of living depends on a country’s production. Productivity is the amount of goods and services produced from each hour of a worker’s time. Higher productivity Ö Higher standard of living