What Do Economists Mean When They Say There Is "Market

question 140

Multiple Choice

What do economists mean when they say there is "market failure"?

• A) Business has introduced a product that consumers do not want.
• B) Free markets have led to excessive profits.
• C) Markets have surpluses or shortages so that government rationing is necessary.
• D) Free markets yield results that economists do not consider socially optimal.

Identify the impacts of international policies and practices such as direct foreign investment, state industry privatization, and agricultural subsidies on DVC economies.

Differentiate between key international economic institutions like the World Bank and their roles in supporting DVCs.

Grasp the magnitude and determinants of foreign aid provided by the industrially advanced countries (IACs) to DVCs.

Recognize the influence of economic growth policies on DVCs and the structure of their economies.

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Definitions:

Shared Beliefs

Common values or principles held by a group of people, which influence their behavior and decision-making.

Ethical Responsibility

involves the duty of individuals and organizations to act in a morally principled manner to benefit society and minimize harm.

Milton Friedman

An influential American economist known for his strong belief in free-market capitalism and minimal government intervention in the economy.

Philanthropic Goodwill

The level of social responsibility in which a business does good without the expectation of anything in return.