People enjoy outdoor holiday lighting displays and would be willing to pay to see them, but can't be made to pay. Because most people who put up lights are unable to charge others to view them, they don't put up as many lights as people would like. This is an example of anegative externality.supply-side market failure.demand-side market failure.government failure.The process by which capital goods are accumulated is known as investment.truefalseA demand curveshows the relationship between price and quantity supplied.indicates the quantity demanded at each price in a series of prices.graphs as an upsloping line.shows the relationship between income and spending.Which of the following statements is not true?Some public goods are paid for by private philanthropy.Private provision of public goods is usually unprofitable.The free-rider problem results from the characteristics of nonrivalry and nonexcludability.Public goods are only provided by government.If many people in a community get flu shots, the whole community benefits, including those who did not get flu shots. Therefore, not enough people may decide to get the shots. This is one illustration ofthe market allocating resources efficiently.monopoly power due to lack of competition.supply-side market failure.demand-side market failure.An increase in the price of a product will reduce the amount of it purchased becausethe higher price will signal to consumers that the good is of low quality.the higher price means that real incomes have risen.consumers will substitute other products for the one whose price has risen.consumers substitute relatively high-priced products for relatively low-priced products.A marketreflects upsloping demand and downward sloping supply curves.entails the exchange of goods, but not services.is an institution that brings together buyers and sellers.always requires face-to-face contact between buyer and seller.The market system does not produce public goods becausethere is no need or demand for such goods.private firms cannot stop consumers who are unwilling to pay for such goods from benefiting from them.public enterprises can produce such goods at lower cost than can private enterprises.their production seriously distorts the distribution of income.Which of the following is a distinguishing feature of a command system?private ownership of all capitalcentral planningheavy reliance on marketswidespread dispersion of economic powerDemand curves representmarginal cost curves.buyers' maximum willingness to pay curves.sellers' minimum-acceptable-price curves.none of the above are correct.Markets, viewed from the perspective of the supply and demand model,assume many buyers and many sellers of a standardized product.assume market power so that buyers and sellers bargain with one another.do not exist in the real-world economy.are approximated by markets in which a single seller determines price.Which of the following is most accurate about economists' view of purposeful behavior?People are inherently greedy with no regard for the well-being of others.Purposeful behavior makes people immune from faulty logic.Pursuing self-interest sometimes includes making personal sacrifices for others.While people undertake actions with a purpose, they rarely give much thought to the costs of their actions.