A Free Market Fails When

question 130

Multiple Choice

A free market fails when

• A)there is government intervention.
• B)there is an external effect in either production, consumption, or both.
• C)firms that produce goods which create positive externalities go bankrupt.
• D)firms that produce goods which create negative externalities earn high profits.

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Definitions:

Age 65

Traditionally considered the age of retirement in many countries, marking the transition from middle age to the senior years.

Information Register

The capacity for storing information temporarily in the mind, playing a critical role in decision-making and other cognitive processes.

Memory

The ability of the mind to store and recall information, experiences, images, or sensations.