Market Failure Occurs When

question 332

Multiple Choice

Market failure occurs when

• A) the price system fails to generate an efficient allocation of resources.
• B) the price system fails to generate an equal distribution of income.
• C) the price system fails to generate an equal distribution of wealth.
• D) the price system allows consumers to make their own decisions.

---

Definitions:

Legal Status

The standing or condition of an entity (person, organization, or object) defined or sanctioned by law, including rights, responsibilities, and liabilities.

Mental Illness

A broad range of mental health conditions that affect mood, thinking, and behavior, often resulting in distress or problems functioning in social, work, or family activities.

Insanity

A legal term describing a person's inability to understand the wrongness of their actions or to conform their behavior to the law, not a specific clinical diagnosis.

Antisocial Personality Disorder

A mental condition characterized by a long-term pattern of disregarding or violating the rights of others, lacking empathy and often breaking laws.