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

question 119

Multiple Choice

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

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

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Definitions:

Imports

Goods and services brought into a country from abroad for sale.

Gross Domestic Product

Gross Domestic Product (GDP) is the total monetary value of all goods and services produced within a country's borders in a specific time period, a primary indicator of economic health.

Sale Price

The actual price at which an item or service is sold to the consumer, often reduced from its original or list price.

New Furniture

Recently manufactured items intended to support various human activities such as seating, eating, and sleeping.