Market Failure Means That

question 44

Multiple Choice

Market failure means that:

• A) government always has to intervene in all markets.
• B) markets always produce efficient outcomes for society.
• C) the market price system fails to operate efficiently, creating a problem for society.
• D) government should never intervene in markets.

---

Definitions:

Stare Decisis

A legal principle that mandates courts to follow the rulings of previous cases in similar circumstances to ensure consistency.

Common Law

A body of unwritten laws based on legal precedents established by the courts, influencing the decision-making in similar cases.

Courts of Chancery

Courts that have jurisdiction over matters of equity, including trusts, land use, and the administration of estates, historically separate from courts of law.

Common Law

A legal system based on court precedents and customs, rather than codified written laws.