What Is a Market Failure

question 14

Multiple Choice

What is a market failure?

• A)It refers to the inability of the market to allocate resources efficiently up to the point where marginal social benefit equals marginal social cost.
• B)It refers to the inability of the market to allocate resources efficiently up to the point where marginal social benefit equals marginal private cost.
• C)It refers to a situation where an entire sector of the economy (for example, the airline industry)collapses because of some unforeseen event.
• D)It refers to a breakdown in a market economy because of widespread corruption in government.

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Definitions:

Psychologists

Professionals specialized in the study and application of psychology, which involves understanding mental functions, behaviors, and processes.

Behavior

The actions or reactions of an individual or system in response to external or internal stimuli.

Extraversion

Extraversion is a personality trait characterized by orientation of one's interests and energies towards the external world and social interactions.

Conceptual Opposite

Refers to an idea or notion that is entirely different or opposed in nature, purpose, or function compared to another.