The Presence of Market Failures Implies That

question 150

Multiple Choice

The presence of market failures implies that

• A)money is not an effective tool for exchange in a market system.
• B)there is an active role for government, even in a market system.
• C)individuals and firms should strive to be self-sufficient rather than specialize.
• D)command systems are superior to market systems in the allocation of resources.

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Definitions:

Professional Careers

Employment paths that require specialized education or training and are often associated with a high level of responsibility, expertise, and salary.

Never Married

Describes individuals who have never entered into a legally recognized marriage or long-term committed relationship.

Living in Poverty

The condition of not having sufficient resources or income to meet basic needs such as food, shelter, and healthcare.

Capital Balance

The amount of money that owners have invested in a business, plus any profits or minus any losses from the company's operations.