Market Failure Is Said to Occur Whenever

question 131

Multiple Choice

Market failure is said to occur whenever

• A) competitive markets do not allocate resources in the most economically desirable way.
• B) prices rise.
• C) some consumers who want a good do not obtain it because the price is higher than they are willing to pay.
• D) government intervenes in the functioning of competitive markets.

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Definitions:

Emotionality

The capacity to experience and display emotions.

Increases

A rise or growth in quantity, size, value, or intensity of something.

Declines

Describes a decrease or deterioration in function, quality, or quantity over time.

Cohort

A group of individuals sharing a common factor (e.g., age, experience) within a specified period, often studied to identify patterns over time.