The Term Market Failure Refers to

question 214

Multiple Choice

The term market failure refers to

• A)a situation in which the market on its own fails to allocate resources efficiently.
• B)an unsuccessful advertising campaign which reduces demand for a product.
• C)a situation in which competition among firms becomes ruthless.
• D)a firm that is forced out of business because of losses.

---

Definitions:

Political Practices

Activities or actions taken within the context of formal politics or governance, including campaigning, legislation, and policy making.

Religious Customs

Traditional practices and rituals followed by members of a religion.

Nature-nurture Issue

The debate surrounding the relative contributions of genetic inheritance (nature) and environmental factors (nurture) to human development and behavior.

Natural Selection

In evolutionary biology, a procedure where life forms more effectively adjusted to their habitat are more apt to thrive and reproduce at a greater rate.