Market Failure

question 3

Multiple Choice

Market failure

• A) is a problem only in the United States
• B) does not occur in socialist economies
• C) means a good is free or has a price of zero
• D) can result from externalities

---

Definitions:

Hydrolyzed

Refers to the chemical process where a molecule is split into two or more parts by the addition of a water molecule.

Fatty Acid

Carboxylic acids with a long aliphatic chain, which can be either saturated or unsaturated, and are a key component of lipids in the diet.

Carnauba Wax

A hard, natural wax obtained from the leaves of the carnauba palm, used in a wide range of products including car waxes, polishes, and cosmetics.

Paraffin Wax

A soft, colorless solid derived from petroleum, coal, or oil shale that's used in candles, cosmetics, and for waterproofing.