When the Market System Does Not Generate the Optimal, or Efficient

question 19

Multiple Choice

When the market system does not generate the optimal, or efficient, allocation of goods and services a ___________________ occurs.

• A)public good
• B)private good
• C)market instability
• D)market failure

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Definitions:

Reflexive Reaction

An automatic, involuntary response to a stimulus.

Unconditioned Stimulus

In classical conditioning, a stimulus that naturally and automatically triggers a response without any learning needed.

Conditioned Stimulus

A previously neutral stimulus that, after association with an unconditioned stimulus, comes to trigger a conditioned response.

Innate Response

Natural or instinctive reactions that organisms are born with, not learned through experience.