The Presence of Market Failures Implies That

question 51

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:

Centrifugal Switch

A switch sensitive to the speed of rotation, generally used to disconnect the start windings of a split-phase motor.

Disconnect Switch

A device used to completely de-energize a circuit for service or maintenance; it ensures the circuit is safe by physically disconnecting it from the power source.

Overload Switch

A protective device used to automatically cut off electrical power in case of an overload, preventing damage to the circuit.

Shaded-pole Induction Motor

A type of single-phase induction motor that uses shading coils around part of the pole to create a rotating magnetic field.