Markets Fail to Allocate Resources Efficiently When

question 37

Multiple Choice

Markets fail to allocate resources efficiently when

• A)demanders and suppliers cannot agree on a price.
• B)goods are rival in consumption and excludable.
• C)property rights are not well established.
• D)too many buyers and sellers exist in the same market.

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Definitions:

Savings

The portion of disposable income not spent on current consumption but set aside for future use, often in a deposit account or as investments.

Investment

The action or process of allocating resources, usually money, with the expectation of generating an income or profit.

Aggregate Demand

The total demand for goods and services within an economy at a given overall price level and in a given time period.

Conclusions

The summary of findings or the final arguments presented after an analysis or discussion.