When Market Failure Occurs,the Role of Government Is to

question 7

Multiple Choice

When market failure occurs,the role of government is to

• A)Eliminate markets.
• B)Push market outcomes closer to the ideal.
• C)Create an alternative to markets.
• D)Do nothing.

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Definitions:

Accounting Records

Documentation and books used to prepare financial statements and track financial transactions.

Manufacturing Companies

Manufacturing companies are businesses that produce physical goods from raw materials using various processes, machinery, and operations.

Merchandising Companies

Businesses that purchase goods in finished form for the purpose of reselling them to customers without further processing.

Resale

Resale refers to the process of selling a previously purchased product, generally used or surplus items, to another buyer.