Market Failure Means That

question 34

Multiple Choice

Market failure means that

• A) the strike organized by unionized employees fails to achieve its goal.
• B) too many outdated products are offered for sale in the local supermarket.
• C) there is overallocation or underallocation of resources to certain economic activity.
• D) an unexpectedly harsh winter shuts down a factory.

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Definitions:

Physical Arousal

A physiological response involving increased heart rate, muscle tension, blood pressure, and breathing rate, often due to excitement or physical activity.

Subliminal Stimulation

A sensory stimulus that is below an individual's threshold for conscious perception but can still influence behavior or thought.

Pupil Contraction

The process by which the pupil decreases in size to limit the amount of light entering the eye.

James-Lange Theory

A theory of emotion proposing that emotions occur as a result of physiological reactions to events. According to this theory, we feel emotion because of biological changes caused by stress.