The Case in Which Public Policies Do NOT Result in an Optimal

question 187

Multiple Choice

The case in which public policies do NOT result in an optimal allocation of resources is called

• A) allocative disturbance.
• B) government failure.
• C) suboptimal distribution.
• D) market failure.

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Definitions:

Expected Value

A statistic that calculates the average outcome of a random event when the process is repeated many times, useful in decision-making and risk assessment.

Dipstick

A tool used for measuring the quantity or level of fluid within a container, commonly used in vehicles to check oil levels.

Sealed-Bid

A bidding process where all bids are submitted confidentially and unopened until the designated time.

Lemons

A citrus fruit known for its sour taste, also used metaphorically to describe a defective or unsatisfactory product or vehicle.