When There Is Reason to Think That the Existing Structure

question 82

Multiple Choice

When there is reason to think that the existing structure of incentives will cause individuals in the market to act in ways that are inconsistent with ideal economic efficiency, economists say that

• A) market failure is present.
• B) democratic political decision-making will lead to the ideal efficient outcome.
• C) government action, however well intended, cannot improve the situation.
• D) government failure is present.

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Definitions:

Yearly Sessions

Regularly scheduled gatherings that occur once a year, typically for planning, assessment, or legislative purposes.

Resolutions

Resolutions are formal decisions or statements of intent adopted by organizations or groups, often as a result of discussion and agreement.

Multilateral Organization

An international institution or group involving three or more countries working together on issues of common interest.

International Trade

The exchange of goods and services across international borders, driven by global demand and supply, tariffs, trade agreements, and economic policies.