A Market Failure Occurs When

question 232

Multiple Choice

A market failure occurs when:

• A)some people are able to buy many more goods than other people are.
• B)the individual's pursuit of self-interest means some people will not be able to buy all of the goods they need.
• C)the individual's pursuit of self-interest makes the society worse off.
• D)while pursuing their self-interest, some people may make a mistake-for example, they may regret buying a particular car.

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Definitions:

Customers

Persons or organizations that buy products or services from a company.

Intangible

Describes something that cannot be physically touched or measured, such as services, brand reputation, or intellectual property.

Reliability

The degree to which a service, tool, or system consistently performs according to its intended or required outcome without failure.

Responsiveness

The speed and quality with which an organization reacts to customer inquiries, complaints, or orders.