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:

Variability

The extent to which data points in a statistical distribution or dataset differ from each other and from the central values (mean, median, mode).

Sources

The origins or providers of information, materials, or components, often used in research or manufacturing contexts.

Toyota Production System

An integrated socio-technical system developed by Toyota to efficiently organize manufacturing and logistics, including the interaction with suppliers and customers.

TPS

Stands for Transaction Processing System, a type of information system that collects, stores, modifies, and retrieves the transactions of an organization.