Markets Fail to Allocate Resources Efficiently When

question 56

Multiple Choice

Markets fail to allocate resources efficiently when:

• A) prices fluctuate.
• B) people who have property rights abuse their privileges.
• C) property rights are not well established.
• D) the government privatizes an industry.
• E) the government refuses to intervene in private markets.

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Definitions:

Continental Rift

A continental rift is a linear zone where the Earth's crust and lithosphere are being pulled apart, often leading to the formation of a new ocean basin.

Andes

A major mountain range in South America that extends over 7,000 km, known for its volcanic activity and diverse ecosystems.

Continental Shelf

The extended perimeter of each continent, lying relatively shallow in the ocean, where the seabed is at a gentle slope before a steep drop off to the ocean floor.

Passive Margin

The transition between oceanic and continental lithosphere that is not an active plate boundary.