Market Failure Occurs When

question 59

Multiple Choice

Market failure occurs when

• A) a good is too expensive for the market to provide.
• B) an unrestrained market economy leads to too few or too many resources going to a specific economic activity.
• C) one good is superior to another and drives it out of the market.
• D) the stock market experiences a very large loss.

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Definitions:

Surrogate Mothers

Women who agree to carry and give birth to a child for another person or couple, following an agreement before the pregnancy.

Cloth Monkey

Reference to a series of experiments by psychologist Harry Harlow, which demonstrated the importance of care, affection, and social connections over mere sustenance.

Harlow (1958)

A reference to the landmark psychological study by Harry Harlow on attachment, demonstrating the importance of comfort and care over mere nourishment in rhesus monkeys.

Contact Comfort

The physical and emotional comfort that an individual derives from being in physical contact with another.