Market Failure Occurs When

question 84

Multiple Choice

Market failure occurs when

• A) markets have perfect information.
• B) markets do not produce the most efficient outcome.
• C) companies merge to increase efficiency.
• D) companies are too efficient.

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Definitions:

Title Conveyance

The legal process of transferring ownership of property from one party to another.

Journal Entry

A record in accounting that logs a transaction and its impact on financial statements, consisting of a debit and a credit.

Trust Fund

A legal entity set up to hold assets such as cash, property, or investments for the benefit of a specific person, group, or organization.