An Analysis of Market Failure and Government Failure Indicates

question 180

Multiple Choice

An analysis of market failure and government failure indicates

• A) government decision making is always preferable to using markets.
• B) market decision making is always preferable to public-sector action.
• C) government action is necessary whenever market failure occurs.
• D) both the market and the government may fail to meet conditions of economic efficiency; in each individual case, the choice of market or public-sector action requires careful evaluation.

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Definitions:

Eating Disorders

Mental disorders defined by abnormal eating habits that negatively affect a person's physical or mental health.

Childhood Sexual Abuse

A form of sexual abuse involving a child and an older person, often resulting in long-term psychological and emotional impact.

Weight Restoration

The process of gaining back weight lost due to an illness or eating disorder, aiming to return to a healthy weight for recovery.

Anorexics

Individuals suffering from anorexia nervosa, an eating disorder characterized by an obsessive fear of gaining weight and severely restricted food intake.