An Example of a Market Failure Is

question 214

Multiple Choice

An example of a market failure is

• A)a firm is dumping toxic waste that is making people sick.
• B)when not everyone who wants to see a major league football game can.
• C)when there is an increase in demand and a shortage develops.
• D)unemployment.

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Definitions:

Middle-income Households

Families or living units with a total income that falls in the middle of a nation's income distribution, neither rich nor poor.

Purchasing Power

Purchasing power denotes the quantity of goods or services that can be bought with a specific amount of money, reflecting the value of currency.

Economic Infrastructure

The underlying physical and organizational structures needed for the operation of a society or enterprise, such as transportation and communication systems.

Distribution Systems

Networks that a company uses to get its products from the manufacturer to the end consumer.