When Faced with a Market Failure, the Government

question 41

Multiple Choice

When faced with a market failure, the government:

• A)tries to redistribute existing surplus more fairly.
• B)always takes over the market.
• C)encourages well-functioning firms to stay through protectionist policy.
• D)enacts thoughtful policy in order to create market efficiency.

---

Definitions:

Goose Bumps

The reflex erection of hairs on the skin, caused by cold, fear, or other stimuli, creating a goosebump appearance.

Dermis Layer

The dense layer of vital tissue situated beneath the epidermis, constituting the real skin and encompassing sweat glands, hair follicles, and additional elements.

Major Tissue Types

The four fundamental types of tissues in the body: epithelial, connective, muscle, and nervous tissue, each with distinct structures and functions.

Chickenpox

A highly contagious viral infection characterized by an itchy red rash, often seen in children and sometimes adults.