Economists Use the Term "Market Failure" to Refer to Those

question 2

Multiple Choice

Economists use the term "market failure" to refer to those free- market situations where

• A)externalities are present in the economy.
• B)government has intervened in the economy.
• C)allocatively efficient outcomes are not achieved.
• D)the economy is not in equilibrium.
• E)income is not distributed equitably.

---

Definitions:

Subjective Feelings

Personal experiences of emotions and sensations that cannot be objectively measured.

Dependent Variable

In an experiment, it is the variable being tested and measured, which is expected to change under different conditions.

Skin Conductance

A measure of the electrical conductance of the skin, which varies with its moisture level and is used as an indicator of emotional or psychological arousal.

Subjective Feelings

Subjective feelings refer to the personal, internal experiences of emotions that may not be observable by others.