The Type of Market Failure in Which a Breakdown Occurs

question 11

Multiple Choice

The type of market failure in which a breakdown occurs in the relationship between a buyer and a seller is called a/an ______ failure.

• A) public
• B) private
• C) contract
• D) common

---

Definitions:

Delusional

Holding beliefs that are clearly false, illogical, or based on incorrect inferences about external reality, despite evidence to the contrary.

Type I

Commonly refers to a classification in various contexts, often seen in medical or technological fields, indicating a particular form or category within a larger grouping.

Type II

Often refers to Type II diabetes, characterized by insulin resistance in the body.

Poverty of Speech

A reduction in speech output that is often observed in various psychological conditions, characterized by brief and unelaborate responses.