Describe Two Types of Failures of Market Outcomes

question 6

Essay

Describe two types of failures of market outcomes.

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Definitions:

Coordination

involves the organization of different elements or activities to enable them to work together effectively toward a common goal.

Balance

A state of equilibrium or equipoise; physically, it refers to the ability to maintain bodily stability, and metaphorically, it can refer to a state of emotional or cognitive stability.

Forebrain

The anterior part of the brain, including the cerebral hemispheres, the thalamus, and the hypothalamus, involved in complex behavioral and cognitive processes.

Motivations

The reasons or drivers behind one's actions or desires.