The "No - Markets Fail Often" camp argues that
A) wages are slow to rise.
B) wages are slow to fall.
C) most supply shocks originate outside the economy.
D) business investors can predict the future.
E) consumers save more when interest rates fall.

Question

Quizplus · Accepted Answer

The argument that "no - markets fail often" suggests that wages are slow to fall, meaning that even when there is a surplus of labor, wages do not decrease quickly enough to restore equilibrium in the market. This is an example of market failure. While some of the other answer choices relate to aspects of the economy, they do not directly address the issue of market failure.

The "No - Markets Fail Often" Camp Argues That