When There Is Reason to Think That the Existing Structure

question 82

Multiple Choice

When there is reason to think that the existing structure of incentives will cause individuals in the market to act in ways that are inconsistent with ideal economic efficiency, economists say that

• A) market failure is present.
• B) democratic political decision-making will lead to the ideal efficient outcome.
• C) government action, however well intended, cannot improve the situation.
• D) government failure is present.

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Definitions:

Spiral of Silence Theory

Explains that ideas and opinions expressed in mass media can discourage expressions by people who hold dissenting opinions due to a sensitivity of feeling isolated or rejected.

Sequential Process

A series of steps or stages that are carried out in a specific order to achieve a particular goal or result.

Excellence Theory

A framework in public relations that emphasizes strategic management of communication to achieve effectiveness and acknowledges the role of public relations in organizational success.

Two-Way Symmetrical Communication

A model in public relations emphasizing mutual understanding and dialogue between an organization and its publics, rather than one-way persuasion.