B. Market distortions such as taxes, subsidies or monopolies
C. Perfect competition
D. Free trade
Answer: Option B
Solution (By JKSSB Mock Tests)
Deadweight loss is the loss of economic efficiency that occurs when the equilibrium quantity is not achieved due to market imperfections or government interventions.
Explanation:
Regional disparities in development and persistent unemployment (especially youth and disguised unemployment) remain significant challenges for the Indian economy.
Explanation:
Search-and-matching theory explains frictional and structural unemployment as the result of imperfect information and the costly process of matching heterogeneous workers with heterogeneous jobs.
Explanation:
A negative externality imposes costs on third parties. Industrial pollution harms the environment and health of people who are not parties to the production decision.
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