An Analysis of Market Failure and Government Failure Indicates

question 180

Multiple Choice

An analysis of market failure and government failure indicates

• A) government decision making is always preferable to using markets.
• B) market decision making is always preferable to public-sector action.
• C) government action is necessary whenever market failure occurs.
• D) both the market and the government may fail to meet conditions of economic efficiency; in each individual case, the choice of market or public-sector action requires careful evaluation.

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Definitions:

Cash Prizes

Monetary awards given to contestants or participants in competitions, contests, or sweepstakes as a form of incentive or reward.

Campus Arrests

Detentions or apprehensions occurring on college or university grounds, typically by campus security or local law enforcement.

Drinking

The act of consuming liquids, often specifically referring to the consumption of alcoholic beverages.

College Campus

The physical grounds and buildings of a college or university where academic and social activities take place.