Failure of Market Outcomes Occurs When

question 85

Multiple Choice

Failure of market outcomes occurs when:

• A) there are market failures such as externalities.
• B) there are no market failures but the market is not achieving society's goals.
• C) the market outcome is not efficient.
• D) the market outcome is not Pareto optimal.

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Definitions:

Indorser

A person who endorses a negotiable instrument.

Rights

Entitlements or permissions, either granted by law or moral principles, allowing individuals to perform certain actions or to be treated in specific ways.

Holder in Due Course

A legal term describing a person who has acquired a negotiable instrument in good faith for value and without notice of certain defects.

Holder's Actions

Decisions or moves made by the individual or entity that possesses or controls a financial instrument or legal document.