A Free Market May Produce a Misallocation of Resources Over

question 89

Multiple Choice

A free market may produce a misallocation of resources over time because

• A)the Fed manipulates interest rates.
• B)people have a "defective telescopic faculty." 
• C)private risk usually exceeds social risk.
• D)All of the above are correct.

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Definitions:

Child Care Services

Services and facilities provided to care for children when their parents or primary caregivers are unavailable or at work.

Education

The process of facilitating learning, or the acquisition of knowledge, skills, values, beliefs, and habits through various means such as schooling.

Glass Ceiling

Attitudinal and organizational workplace obstacles that prevent women from advancing to leadership positions.

Organizational Biases

Prejudices or systematic tendencies within an organization that influence its decisions and behaviors, often leading to unfair outcomes.